|9 Months Ended|
Sep. 30, 2022
|Debt Disclosure [Abstract]|
|Long-Term Debt||Long-Term Debt
The Company’s credit facilities and related balances were as follows:
Future contractual maturities of credit facilities as of September 30, 2022 are as follows:
Debt Issuance Costs
The Company capitalizes fees associated with the origination of its credit facilities which are presented in the consolidated balance sheets as a direct deduction from the carrying amount of the related loans. The debt issuance costs are amortized using the effective interest method. Amortization of debt issuance costs was $20 and $281 for the three and nine months ended September 30, 2022, respectively, and $13 and $267 for the three and nine months ended September 30, 2021, respectively. These costs are included in interest expense in the unaudited consolidated statements of operations.
The equipment financing loan is secured by the equipment financed and is at an interest rate of the BSBY plus 3.50%. As of September 30, 2022, the Company has available credit under the equipment financing loan and the retail facility of $5,871 and $4,124, respectively.
Upon the closing of the Business Combination, Authentic Brands' credit facility borrowings of $8,000 were paid off.
In July 2022, the Company borrowed $14,000 on the Authentic Brands' credit facility and the amount of borrowings available was $11,000 as of September 30, 2022.
Equipment Term Loan
In August 2022, borrowings under the equipment financing loan of $4,043 were converted into the Equipment Term Loan (the “Term Loan”). The Term Loan is secured by the equipment financed and matures in June 2029 bearing an interest rate of 6.88%.
In January 2022, Authentic Brands borrowed $5,000 under a promissory note. In February 2022, Authentic Brands repaid the $15,000 outstanding on the promissory note and the promissory note was terminated.
In January 2022, Authentic Brands entered into a note payable agreement for $1,599 at an interest rate of 1.30% per annum to repurchase incentive units from a former employee. The note matures on January 14, 2026. The loan is payable in four annual installments of principal commencing on January 14, 2023.
In May 2022, Authentic Brands fully repaid a note payable agreement for $272.
In July 2022, Authentic Brands made a note payable payment of $566.
In March 2022, BRC Inc. entered into a Guaranty Agreement to guaranty payment of all the Authentic Brands' outstanding mortgage loans, equipment financing loan, the retail facility, and the credit facility.
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.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef