LONG-TERM DEBT (Tables)
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6 Months Ended |
Jun. 30, 2022 |
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| LONG-TERM DEBT |
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| Schedule of outstanding indebtedness, at face value |
As of June 30, 2022, the Company’s outstanding indebtedness, at face value, was as follows (in thousands): | | | | | | | | | | Face Value Debt | | Stated Interest Rate | | Maturity Date | Credit Facility | | $ | 72,500 | | 30-Day LIBOR +
[1.35% - 1.95%] | | November 2023 | 2026 Term Loan (1) | | | 100,000 | | 30-Day SOFR + 0.10% +
[1.35% - 1.95%] | | May 2026 | 2027 Term Loan (2) | | | 100,000 | | 30-Day SOFR + 0.10% +
[1.25% - 1.90%] | | January 2027 | Mortgage Note Payable – CMBS Portfolio | | | 30,000 | | 4.33% | | October 2034 | Total Debt/Weighted-Average Rate | | $ | 302,500 | | 3.04% | | |
| (1) | Effective May 21, 2021, as amended on April 14, 2022 in connection with the 2026 Term Loan Amendment (hereinafter defined), the Company utilized interest rate swaps to fix SOFR and achieve a weighted average fixed interest rate of 0.80% plus the applicable spread on $60.0 million of the $100.0 million 2026 Term Loan (hereinafter defined) balance. See Note 10, “Interest Rate Swaps” for further disclosure related to the Company’s interest rate swaps. |
| (2) | Effective September 30, 2021, as amended on April 14, 2022 in connection with the 2027 Term Loan Amendment (hereinafter defined), the Company utilized interest rate swaps, inclusive of the existing $50.0 million interest rate swap entered into as of April 30, 2020, to fix SOFR and achieve a weighted average fixed interest rate of 0.51% plus the applicable spread on $80.0 million of the $100.0 million 2027 Term Loan (hereinafter defined) balance. On September 30, 2021, the Company entered into an additional interest rate swap to extend the fixed interest rate through maturity on January 31, 2027. See Note 10, “Interest Rate Swaps” for further disclosure related to the Company’s interest rate swaps. |
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| Schedule of components of long-term debt |
Long-term debt as of June 30, 2022 and December 31, 2021 consisted of the following (in thousands): | | | | | | | | | | | | | | | June 30, 2022 | | December 31, 2021 | | | Total | | Due Within One Year | | Total | | Due Within One Year | Credit Facility | | $ | 72,500 | | $ | — | | $ | 99,000 | | $ | — | 2026 Term Loan | | | 100,000 | | | — | | | 60,000 | | | — | 2027 Term Loan | | | 100,000 | | | — | | | 80,000 | | | — | Mortgage Note Payable – CMBS Portfolio | | | 30,000 | | | — | | | 30,000 | | | — | Financing Costs, net of Accumulated Amortization | | | (1,527) | | | — | | | (1,260) | | | — | Total Long-Term Debt | | $ | 300,973 | | $ | — | | $ | 267,740 | | $ | — |
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| Schedule of payments applicable to reduction of principal amounts |
Payments applicable to reduction of principal amounts as of June 30, 2022 will be required as follows (in thousands): | | | | Year Ending December 31, | | Amount | Remainder of 2022 | | $ | — | 2023 | | | 72,500 | 2024 | | | — | 2025 | | | — | 2026 | | | 100,000 | 2027 | | | 100,000 | 2028 and Thereafter | | | 30,000 | Total Long-Term Debt - Face Value | | $ | 302,500 |
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| Schedule of carrying value of long-term debt |
The carrying value of long-term debt as of June 30, 2022 consisted of the following (in thousands): | | | | | | Total | Current Face Amount | | $ | 302,500 | Financing Costs, net of Accumulated Amortization | | | (1,527) | Total Long-Term Debt | | $ | 300,973 |
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| Schedule of interest expense on debt |
The following table reflects a summary of interest expense incurred and paid during the three and six months ended June 30, 2022 and 2021 (in thousands): | | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | | | June 30, 2022 | | June 30, 2021 | | June 30, 2022 | | June 30, 2021 | Interest Expense | | $ | 1,991 | | $ | 594 | | $ | 3,546 | | $ | 1,084 | Amortization of Deferred Financing Costs to Interest Expense | | | 132 | | | 84 | | | 257 | | | 149 | Total Interest Expense | | $ | 2,123 | | $ | 678 | | $ | 3,803 | | $ | 1,233 | | | | | | | | | | | | | | Total Interest Paid | | $ | 1,840 | | $ | 623 | | $ | 3,352 | | $ | 1,105 |
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