Quarterly report pursuant to Section 13 or 15(d)

Debt

v3.22.2.2
Debt
 6 Months Ended
Jun. 30, 2022
Debt Disclosure [Abstract]  
Debt

Note 10. Debt

 

On December 23, 2021, Fathom OpCo entered into the New Credit Agreement, which included a $50,000 revolving credit facility and $125,000 term loan. The Company's borrowings under the revolving credit agreement were $27,000 at June 30, 2022. The loans made under the New Credit Agreement will mature in December 2026.

 

The Company recorded deferred financing costs of $1,828 in conjunction with the New Credit Agreement and the balance is presented net within Long-term debt, net on the Company's consolidated balance sheet. The Company amortizes the deferred financing costs using the effective interest method.

The revolving credit facility under the New Credit Agreement is available for working capital and other general corporate purposes and includes a letter of credit sub-facility of up to $5,000. The New Credit Agreement also includes an uncommitted incremental facility, which, subject to certain conditions, provides for additional term loan facilities, an increase in commitments under the New Credit Agreement and/or an increase in commitments under the revolving credit facility, in an aggregate amount of up to $100,000. The Company is subject to various financial covenants, including quarterly net leverage and interest coverage covenants. The Company is in compliance with all debt covenants related to the New Credit Agreement as of June 30, 2022.

 

The Company’s debt as of June 30, 2022 and December 31, 2021 is as follows:

 

 

 

As of June 30, 2022

 

 

As of December 31, 2021

 

Debt Description

 

Interest Rate

 

 

Amount

 

 

Interest Rate

 

 

Amount

 

New Credit Agreement Revolver

 

 

5.41

%

 

$

27,000

 

 

 

3.60

%

 

$

27,000

 

New Credit Agreement Term Loan

 

 

5.75

%

 

 

123,438

 

 

 

3.72

%

 

 

125,000

 

Total principal long-term debt

 

 

 

 

 

150,438

 

 

 

 

 

 

152,000

 

Debt issuance costs

 

 

 

 

 

(1,582

)

 

 

 

 

 

(1,812

)

Total debt, net

 

 

 

 

 

148,856

 

 

 

 

 

 

150,188

 

Less: current portion of debt

 

 

 

 

 

31,179

 

 

 

 

 

 

29,697

 

Long-term debt, net of current portion

 

 

 

 

$

117,677

 

 

 

 

 

$

120,491

 

 

Interest on all debt is payable in 90 day increments, with the unpaid amount due upon maturity. Interest expense associated with long-term debt for the three months ended June 30, 2022 and June 30, 2021 was $1,843 and $1,632, respectively, and $3,316 and $3,746 for the six months ended June 30, 2022 and June 30, 2021, respectively. Included in interest expense, net on the accompanying unaudited consolidated statements of comprehensive loss is amortization of debt issuance costs for the three months ended June 30, 2022 and June 30, 2021 of $130, and $520, respectively, and $230 and $616 for the six months ended June 30, 2022 and June 30, 2021, respectively.

In December 2021, Fathom OpCo entered into a financing agreement through its insurance broker to spread the payment of its annual director’s and officer’s insurance premium over a ten-month period. Total financed payments of $3,001, including a $35 financing fee at a 2.57% annual rate, are to be made between January 2022 and October 2022. As of June 30, 2022 the Company recognized $1,345 of prepaid assets and $1,179 of other current liabilities in the unaudited consolidated financial statements. For the three months and six months ended June 30, 2022 the Company recognized $842 and $1,684 of insurance expense in selling, general and administrative ("SG&A") expenses, respectively.