Note 10 - Debt

3 Months Ended

Mar. 31, 2026

10.

DEBT

The Company has a Credit and Security Agreement with KeyBank National Association (as amended, the "Credit Agreement" or the "CSA") with a maximum revolving amount of $400 million.

At March 31, 2026 and December 31, 2025, outstanding borrowings under the revolver amounted to $204.5 million and $197.5 million, respectively. The unused credit available under the credit facility was $195.5 million at March 31, 2026 and $202.5 million at December 31, 2025. The Company incurred $2.5 million and $4.2 million of interest expense during the three months ended March 31, 2026 and 2025, respectively, in connection with interest due on its outstanding borrowings under the CSA during each period, including the effects of the 2021 Swaps discussed in Note 9, "Derivative Instruments and Hedging Activities", and amortization of deferred financing costs.

The Company’s borrowings consist of (i) a $60.0 million fixed-rate tranche that bears interest at a stated rate of 2.59% at March 31, 2026 and December 31, 2025, respectively and (ii) a variable-rate tranche of $144.5 million and $137.5 million at March 31, 2026 and December 31, 2025, respectively, that bears interest at SOFR plus the applicable credit spread in accordance with the credit agreement. For comparability, the Company also presents the weighted-average effective interest rates on its borrowings after giving effect to the 2021 interest rate swaps: the weighted-average effective rate on the variable-rate tranche was 3.54% and 3.63% as of March 31, 2026 and December 31, 2025, respectively, and the weighted-average effective rate on total borrowings (fixed and variable) was 4.30% and 4.42%, respectively. The stated variable rates in effect on the measurement dates (before the impact of the swaps) were 5.01% at March 31, 2026 and 5.21% at December 31, 2025.

The CSA contains customary representations and warranties, covenants and events of default. In addition, the CSA contains financial covenants that measure (i) the ratio of the Company’s total funded indebtedness, on a consolidated basis, less the aggregate amount of all unencumbered cash and cash equivalents, to the amount of the Company’s consolidated EBITDA (or the “Leverage Ratio”), in each case as defined and calculated in accordance with the CSA, and (ii) the ratio of the amount of the Company’s consolidated EBITDA to the Company’s consolidated fixed charges (or the “Fixed Charge Coverage Ratio”), in each case as defined and calculated in accordance with the CSA. If an event of default occurs, the lenders under the CSA would be entitled to take various actions, including the acceleration of amounts due thereunder and all actions permitted to be taken by a secured creditor.

At March 31, 2026, the Company was in compliance with its debt covenants, including its most restrictive covenant, the Fixed Charge Coverage Ratio.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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+ Details

BEL FUSE INC /NJ 10-Q