AssetMark Financial Holdings, Inc. - 10-K filing on 2022-03-10

Debt	12 Months Ended
Dec. 31, 2021
Debt Disclosure [Abstract]
Debt	Note 10. Debt On November 14, 2018, the Company executed a Credit Agreement (the 2018 Credit Agreement) with Credit Suisse AG for a $250,000 term loan (the “2018 Term Loan”) and a revolving line of credit (the “ 2018 Revolver”) that permitted the Company to borrow up to $20,000 (the 2018 Term Loan and the 2018 Revolver, together the “ 2018 Credit Facility”). The 2018 Term Loan was set to mature on November 14, 2025 and the 2018 Revolver was set to mature on November 14, 2023. On July 26, 2019, the Company made a partial repayment of $125 million of the Company’s outstanding indebtedness under the 2018 Term Loan and repaid the remaining outstanding amount on December 30, 2020 through the execution of the New Credit Agreement (as defined below). On December 30, 2020, the Company entered into a Credit Agreement (the “2020 Credit Agreement”) with Bank of Montreal for a new senior secured credit facility in an aggregate principal amount of $250,000, consisting of a revolving credit facility with commitments in an aggregate principal amount of $250,000 (the “2020 Revolving Credit Facility” and the loans thereunder, the “2020 Revolving Loans”), with an accordion option of up to $25,000. The Company drew down $75,000 under the 2020 Revolving Credit Facility on December 30, 2020, the proceeds of which, together with cash on hand, were used to repay in full the Company’s obligations under the 2018 Term Loan. In connection with such repayment in full, the 2018 Credit Agreement, the commitments thereunder and the guarantees and security interests with respect thereto were terminated and released, as applicable. On June 22, 2021, the Company drew down $75,000 under the 2020 Revolving Credit Facility to partially finance the acquisition of Voyant. During the year ended December 31, 2021, the Company paid down a total of $35,000. The 2020 Revolving Loans bear interest at a rate per annum equal to, at the Company’s option, either (i) LIBOR plus a margin based on the Company’s Total Leverage Ratio (as defined in the New Credit Agreement) or (ii) the Base Rate (as defined in the New Credit Agreement) plus a margin based on the Company’s Total Leverage Ratio. The margin will range between 1.00% and 2.625% for base rate loans and between 2.00% and 3.625% for LIBOR loans. The Company will pay a commitment fee based on the average daily unused portion of the commitments under the 2020 Revolving Credit Facility, a letter of credit fee equal to the margin then in effect with respect to the LIBOR loans under the 2020 Revolving Credit Facility, a fronting fee and any customary documentary and processing charges for any letter of credit issued under the New Credit Agreement. The 2020 Revolving Credit Facility is not subject to amortization and will mature on December 30, 2024. Interest expense was $3,559, $5,588 and $12,269 for the years ended December 31, 2021, 2020 and 2019, respectively. On January 12, 2022, AssetMark Financial Holdings, Inc. amended the 2020 Credit Agreement with Bank of Montreal. Refer to Note 21 for additional information.

Debt

12 Months Ended

Dec. 31, 2021

Note 10. Debt

On November 14, 2018, the Company executed a Credit Agreement (the 2018 Credit Agreement) with Credit Suisse AG for a $250,000 term loan (the “2018 Term Loan”) and a revolving line of credit (the “ 2018 Revolver”) that permitted the Company to borrow up to $20,000 (the 2018 Term Loan and the 2018 Revolver, together the “ 2018 Credit Facility”). The 2018 Term Loan was set to mature on November 14, 2025 and the 2018 Revolver was set to mature on November 14, 2023. On July 26, 2019, the Company made a partial repayment of $125 million of the Company’s outstanding indebtedness under the 2018 Term Loan and repaid the remaining outstanding amount on December 30, 2020 through the execution of the New Credit Agreement (as defined below).

On December 30, 2020, the Company entered into a Credit Agreement (the “2020 Credit Agreement”) with Bank of Montreal for a new senior secured credit facility in an aggregate principal amount of $250,000, consisting of a revolving credit facility with commitments in an aggregate principal amount of $250,000 (the “2020 Revolving Credit Facility” and the loans thereunder, the “2020 Revolving Loans”), with an accordion option of up to $25,000. The Company drew down $75,000 under the 2020 Revolving Credit Facility on December 30, 2020, the proceeds of which, together with cash on hand, were used to repay in full the Company’s obligations under the 2018 Term Loan. In connection with such repayment in full, the 2018 Credit Agreement, the commitments thereunder and the guarantees and security interests with respect thereto were terminated and released, as applicable. On June 22, 2021, the Company drew down $75,000 under the 2020 Revolving Credit Facility to partially finance the acquisition of Voyant. During the year ended December 31, 2021, the Company paid down a total of $35,000.

The 2020 Revolving Loans bear interest at a rate per annum equal to, at the Company’s option, either (i) LIBOR plus a margin based on the Company’s Total Leverage Ratio (as defined in the New Credit Agreement) or (ii) the Base Rate (as defined in the New Credit Agreement) plus a margin based on the Company’s Total Leverage Ratio. The margin will range between 1.00% and 2.625% for base rate loans and between 2.00% and 3.625% for LIBOR loans. The Company will pay a commitment fee based on the average daily unused portion of the commitments under the 2020 Revolving Credit Facility, a letter of credit fee equal to the margin then in effect with respect to the LIBOR loans under the 2020 Revolving Credit Facility, a fronting fee and any customary documentary and processing charges for any letter of credit issued under the New Credit Agreement. The 2020 Revolving Credit Facility is not subject to amortization and will mature on December 30, 2024.

Interest expense was $3,559, $5,588 and $12,269 for the years ended December 31, 2021, 2020 and 2019, respectively.

On January 12, 2022, AssetMark Financial Holdings, Inc. amended the 2020 Credit Agreement with Bank of Montreal. Refer to Note 21 for additional information.