Debt (Tables)
|
12 Months Ended |
Dec. 31, 2023 |
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| Debt Disclosure [Abstract] |
|
| Schedule of Debt |
The components of debt were as follows:
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As of December 31, |
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|
2023 |
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|
2022 |
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|
(in thousands) |
|
Senior Notes |
|
$ |
444,432 |
|
|
$ |
443,648 |
|
M&T debt |
|
|
65,228 |
|
|
|
49,023 |
|
Capital One line of credit |
|
|
332,027 |
|
|
|
256,430 |
|
Insurance premium notes |
|
|
3,752 |
|
|
|
2,886 |
|
Total debt, net |
|
$ |
845,439 |
|
|
$ |
751,987 |
|
Less current portion |
|
|
(16,792 |
) |
|
|
(11,944 |
) |
Total long-term debt, net |
|
$ |
828,647 |
|
|
$ |
740,043 |
|
|
| Schedule of Debt Description |
Financing Agreements
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Type of financing |
Amount of
financing |
Financing payment terms |
Interest rate |
Interest
rate as of
December 31,
2023 |
Amount
financed as
of
December 31,
2023
(in thousands) |
|
Balance as
of
December 31,
2023
(net of
deferred
financing
costs)
(in thousands) |
|
ARKO Corp. |
|
Senior Notes |
$450 million |
The full amount of principal is due on maturity date of November 15, 2029. |
Fixed rate |
5.125% |
$ |
450,000 |
|
$ |
444,432 |
|
GPM Investments, LLC |
|
PNC Line of Credit |
Up to $140 million |
Maturity date of December 22, 2027. |
For revolving advances that are Term SOFR Loans: SOFR Adjusted plus Term SOFR (as defined in the agreement) plus 1.25% to 1.75%
For revolving advances that are domestic rate loans: Alternate Base Rate (as defined in the agreement) plus 0% to 0.5%
Every quarter, the margin rates are updated based on the quarterly average undrawn availability of the line of credit.
Unused fee - 0.375% or 0.25% if usage is 25% or more |
6.60% |
None
$132,576 unused based on borrowing base |
|
None |
|
M&T Term Loans |
$44.4 million |
$35.0 million of principal is paid in equal monthly installments of approximately $194 thousand based on a 15-year amortization schedule with a balance of $23.1 million due on the maturity date of June 10, 2026.
$9.4 million of principal is paid in equal monthly installments of approximately $52 thousand based on a 15-year amortization schedule with a balance of $6.4 million due on the maturity date of November 10, 2028. |
SOFR (as defined in the agreement) plus 3.0% (until September 28, 2023 - LIBOR plus 3.0%)
SOFR (as defined in the agreement) plus 2.75% |
8.49%
8.06% |
$ |
38,087 |
|
$ |
37,493 |
|
M&T Equipment Line of Credit |
Up to $45 million |
$9.1 million of the current balance is being paid in equal monthly installments of approximately $590 thousand (principal and interest) with the balance due on various maturity dates through September 2025.
$16.4 million of the current balance is being paid in equal monthly principal installments of approximately $330 thousand with the balance due on various maturity dates through September 2028.
Each additional equipment loan tranche borrowed from September 28, 2023 will have a term of up to five years from the date it is advanced. |
Fixed rate
SOFR (as defined in the agreement) plus 2.75% |
3.58% to 6.90%
8.07% |
$25,484
$19,516 unused |
|
$ |
25,216 |
|
Other M&T Term Loans |
$3.3 million |
The principal is being paid in equal monthly installments including interest of approximately $37 thousand with the remaining balance due on various maturity dates through August 2031. |
Fixed rate |
3.91% to 6.62% |
$ |
2,536 |
|
$ |
2,519 |
|
GPMP |
|
Capital One Line of Credit |
Up to $800 million |
The full amount of the principal is due on the maturity date of May 5, 2028. |
For SOFR Loans: Adjusted Term SOFR (as defined in the agreement) plus 2.25% to 3.25%
For alternate base rate loans: Alternate Base Rate (as defined in the agreement) plus 1.25% to 2.25%
The margin is determined according to a formula that depends on GPMP's leverage.
Unused fee ranges from 0.3% to 0.50% |
8.18% |
$338,300
No borrowings under the Alternate Base rate
$461,200 unused |
|
$ |
332,027 |
|
Total |
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|
|
|
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|
$ |
841,687 |
|
|
| Schedule of Letter of Credit Facilities |
Letters of Credit
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|
Financing Facility |
|
Amount
available for
letters
of credit |
|
Letters of
credit issued
as of
December 31,
2023 |
PNC Line of Credit |
|
$40.0 million |
|
$7.3 million |
Capital One Credit Facility |
|
$40.0 million |
|
$0.5 million |
The letters of credit were issued in connection with certain workers’ compensation and general insurance liabilities and fuel purchases from one supplier. The letters of credit will be drawn upon only if the Company does not comply with the time schedules for the payment of associated liabilities.
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| Schedule of Future Principal Payments and Amortization of Deferred Financing Costs |
Total scheduled future principal payments required and amortization of deferred financing costs under all of the foregoing debt agreements were as follows as of December 31, 2023:
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Amount |
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|
(in thousands) |
|
2024 |
|
$ |
17,063 |
|
2025 |
|
|
10,361 |
|
2026 |
|
|
29,451 |
|
2027 |
|
|
4,764 |
|
2028 |
|
|
346,176 |
|
Thereafter |
|
|
450,343 |
|
|
|
|
858,158 |
|
Deferred financing costs |
|
|
(12,719 |
) |
Total debt |
|
$ |
845,439 |
|
|