Quarterly report pursuant to Section 13 or 15(d)

Debt

v3.24.1.1.u2
Debt
 3 Months Ended
Mar. 31, 2024
Debt Disclosure [Abstract]  
Debt

NOTE 4. DEBT

Debt is comprised of the following:

 

 

March 31,
2024

 

 

December 31,
2023

 

ProFrac Holding Corp.:

 

 

 

 

 

 

2029 Senior Notes

 

$

500.0

 

 

$

520.0

 

2022 ABL Credit Facility

 

 

137.7

 

 

 

117.4

 

Equify Notes (1)

 

 

17.1

 

 

 

18.6

 

Finance lease obligations

 

 

8.1

 

 

 

8.6

 

Other

 

 

8.8

 

 

 

13.8

 

ProFrac Holding Corp. principal amount

 

 

671.7

 

 

 

678.4

 

Less: unamortized debt discounts, premiums, and issuance costs

 

 

(16.5

)

 

 

(17.4

)

Less: current portion of long-term debt

 

 

(57.8

)

 

 

(47.2

)

ProFrac Holding Corp. long-term debt, net

 

 

597.4

 

 

 

613.8

 

 

 

 

 

 

 

 

Alpine Subsidiary:

 

 

 

 

 

 

Alpine 2023 Term Loan

 

 

365.0

 

 

 

365.0

 

Monarch Note

 

 

43.8

 

 

 

54.7

 

Finance lease obligations

 

 

1.3

 

 

 

2.1

 

Alpine principal amount

 

 

410.1

 

 

 

421.8

 

Less: unamortized debt discounts, premiums, and issuance costs

 

 

(20.0

)

 

 

(22.0

)

Less: current portion of long-term debt

 

 

(75.3

)

 

 

(71.6

)

Alpine long-term debt, net

 

 

314.8

 

 

 

328.2

 

 

 

 

 

 

 

 

Flotek Subsidiary:

 

 

 

 

 

 

Flotek ABL credit facility

 

 

3.1

 

 

 

7.5

 

Flotek other

 

 

0.2

 

 

 

0.2

 

Flotek principal amount

 

 

3.3

 

 

 

7.7

 

Less: current portion of long-term debt

 

 

(3.3

)

 

 

(7.6

)

Flotek long-term debt, net

 

 

—

 

 

 

0.1

 

 

 

 

 

 

 

 

Consolidated:

 

 

 

 

 

 

Total principal amount

 

 

1,085.1

 

 

 

1,107.9

 

Less: unamortized debt discounts, premiums, and issuance costs

 

 

(36.5

)

 

 

(39.4

)

Less: current portion of long-term debt

 

 

(136.4

)

 

 

(126.4

)

Total long-term debt

 

$

912.2

 

 

$

942.1

 
(1)
Related party debt agreements.

Senior Secured Notes Due 2029

During the three months ended March 31, 2024, we made principal payments of $20.0 million on our 2029 Senior Notes.

ABL Credit Facility

As of March 31, 2024, the maximum availability under the ABL credit facility was limited to our eligible borrowing base of $291.6 million with $137.7 million of borrowings outstanding and $10.1 million of letters of credit outstanding, resulting in approximately $143.8 million of remaining availability.

Monarch Note

During the three months ended March 31, 2024, we made principal payments of $10.9 million on the Monarch Note.

 

Equify Note

During the three months ended March 31, 2024, we made principal payments of $1.5 million on the Equify Note.

Debt Compliance

Both the 2029 Senior Notes and the ABL Credit Facility contain certain customary representations and warranties and affirmative and negative covenants. As of March 31, 2024, we were in compliance with these covenants and expect to be compliant for at least the next twelve months.

Commencing with the fiscal quarter ending September 30, 2024, the Alpine 2023 Term Loan contains a covenant requiring Alpine not to exceed a maximum Total Net Leverage Ratio (as defined in the Alpine Term Loan Credit Agreement) of 2.00 to 1.00. This ratio is generally the consolidated total debt of Alpine divided by Alpine's adjusted EBITDA. As a result of Alpine’s lower than expected operating results in the three months ended March 31, 2024, Alpine is closely monitoring compliance with this covenant. While there can be no assurance, Alpine believes that it will be able to meet, modify, or further defer this debt covenant.

Restricted Assets

Our Alpine 2023 Term Loan requires us to segregate collateral associated with our Alpine subsidiary, which comprises our proppant production segment, and limits our ability to use Alpine's cash or assets to satisfy our obligations or the obligations of our other subsidiaries. We also have limited ability to provide Alpine with liquidity to satisfy its obligations. See “Note 12. Business Segments” for certain financial information for Alpine.