Quarterly report [Sections 13 or 15(d)]

Debt And Derivatives

v3.25.4
Debt And Derivatives
 3 Months Ended
Dec. 31, 2025
Debt Disclosure [Abstract]  
Debt And Derivatives DEBT AND DERIVATIVES
Table 7.1: Details of Debt
December 31, 2025 September 30, 2025
(in thousands)
Term Loan A (TLA) $ 841,875  $ 853,125 
Term Loan B (TLB) 492,500  493,750 
Revolver 245,000  — 
Total debt principal 1,579,375  1,346,875 
Less: Unamortized debt-issuance costs and discounts (11,865) (12,602)
Total debt 1,567,510  1,334,273 
Less: Current portion of long-term debt (58,305) (52,680)
Long-term debt $ 1,509,205  $ 1,281,593 
Our credit agreements require us to comply with a number of covenants, including leverage and interest coverage ratios. At December 31, 2025, we are in compliance with all covenants. We do not believe that the covenants represent a significant restriction on our ability to successfully operate the business or to pay dividends.
The following table sets forth future minimum principal payments due under our debt obligations as of December 31, 2025 for the remainder of fiscal year 2026 through fiscal year 2031:
Table 7.2: Details of Future Minimum Principal Payments Due
Amount Due
(in thousands)
January 1, 2026 through September 30, 2026 $ 43,125 
Year ended September 30, 2027 72,500 
Year ended September 30, 2028 78,125 
Year ended September 30, 2029 911,875 
Year ended September 30, 2030 5,000 
Years ended thereafter 468,750 
Total payments $ 1,579,375 
Interest Rate Derivative Instruments
We utilize interest rate swaps that are designed to reduce our risk from changes in interest rates, which we have designated as cash flow hedges. The following table presents our interest rate swaps:
Table 7.3: Interest Rate Derivative Instruments
As of December 31, 2025
Debt Principal Hedged Notional Amount Fixed Interest Rate Effective Expiry
(in thousands)
Term Loan A $ 500,000  2.31  % Present May 2026
Term Loan B $ 75,000  3.72  % Present September 2026
Term Loan B $ 75,000  3.62  % Present September 2027
Term Loan A $ 150,000  3.14  % June 2026 September 2027
Term Loan A $ 150,000  3.28  % June 2026 September 2028
The balance of the debt pays interest based upon the SOFR. At December 31, 2025, our effective interest rate, including the original issuance costs and discount rate, was 5.1%.
At December 31, 2025, we recorded an asset of $3.4 million and a liability of $1.5 million to reflect the fair value of our interest rate swap agreements, compared to an asset of $5.5 million and a liability of $1.7 million at September 30, 2025. The asset and liability are recorded as "other assets" and "other liabilities," respectively, within our consolidated balance sheets. As these instruments are effective cash flow hedges, gains and losses based upon interest rate fluctuations are recorded within "accumulated other comprehensive income" within our consolidated financial statements.
Debt And Derivatives DEBT AND DERIVATIVES
Table 7.1: Details of Debt
December 31, 2025 September 30, 2025
(in thousands)
Term Loan A (TLA) $ 841,875  $ 853,125 
Term Loan B (TLB) 492,500  493,750 
Revolver 245,000  — 
Total debt principal 1,579,375  1,346,875 
Less: Unamortized debt-issuance costs and discounts (11,865) (12,602)
Total debt 1,567,510  1,334,273 
Less: Current portion of long-term debt (58,305) (52,680)
Long-term debt $ 1,509,205  $ 1,281,593 
Our credit agreements require us to comply with a number of covenants, including leverage and interest coverage ratios. At December 31, 2025, we are in compliance with all covenants. We do not believe that the covenants represent a significant restriction on our ability to successfully operate the business or to pay dividends.
The following table sets forth future minimum principal payments due under our debt obligations as of December 31, 2025 for the remainder of fiscal year 2026 through fiscal year 2031:
Table 7.2: Details of Future Minimum Principal Payments Due
Amount Due
(in thousands)
January 1, 2026 through September 30, 2026 $ 43,125 
Year ended September 30, 2027 72,500 
Year ended September 30, 2028 78,125 
Year ended September 30, 2029 911,875 
Year ended September 30, 2030 5,000 
Years ended thereafter 468,750 
Total payments $ 1,579,375 
Interest Rate Derivative Instruments
We utilize interest rate swaps that are designed to reduce our risk from changes in interest rates, which we have designated as cash flow hedges. The following table presents our interest rate swaps:
Table 7.3: Interest Rate Derivative Instruments
As of December 31, 2025
Debt Principal Hedged Notional Amount Fixed Interest Rate Effective Expiry
(in thousands)
Term Loan A $ 500,000  2.31  % Present May 2026
Term Loan B $ 75,000  3.72  % Present September 2026
Term Loan B $ 75,000  3.62  % Present September 2027
Term Loan A $ 150,000  3.14  % June 2026 September 2027
Term Loan A $ 150,000  3.28  % June 2026 September 2028
The balance of the debt pays interest based upon the SOFR. At December 31, 2025, our effective interest rate, including the original issuance costs and discount rate, was 5.1%.
At December 31, 2025, we recorded an asset of $3.4 million and a liability of $1.5 million to reflect the fair value of our interest rate swap agreements, compared to an asset of $5.5 million and a liability of $1.7 million at September 30, 2025. The asset and liability are recorded as "other assets" and "other liabilities," respectively, within our consolidated balance sheets. As these instruments are effective cash flow hedges, gains and losses based upon interest rate fluctuations are recorded within "accumulated other comprehensive income" within our consolidated financial statements.