v3.26.1
Debt Obligations
 3 Months Ended
Mar. 31, 2026
Schedule of Debt [Line Items]  
Debt Obligations
(7)
Debt Obligations
Debt obligations consisted of the following:
 
    
March 31,
2026
     
December 31,
2025
  
Long-term debt
    $  —       $ 397,128  
Less: unamortized issuance costs
      —         (5,140 ) 
  
 
 
     
 
 
  
Long-term debt, net
    $ —       $ 391,988  
  
 
 
     
 
 
  
Current portion of long-term debt
    $ —       $ 4,063  
Less: unamortized issuance costs
      —         (1,565 ) 
  
 
 
     
 
 
  
Current portion of long-term debt, net
    $ —       $ 2,498  
  
 
 
     
 
 
  
Extinguishment of Term Debt
In connection with the completion of the IPO and the application of the net proceeds therefrom, the Company caused SOLV Energy Holdings LLC to terminate its existing term credit agreement and fully repay outstanding term debt of
 
approximately $
401,100
. The Company recognized a $
10,485
loss on the extinguishment of debt relating to the
write-off
of unamortized debt issuance costs of $
6,419
and prepayment penalty of $
4,066
.
 
New Revolving Credit Facility
On February 12, 2026, in connection with the IPO, the Company terminated its existing revolving credit facility (the “Old Revolver”) and entered into a New Revolving Credit Facility (the “New Revolver”) with various lenders providing for revolving borrowings in an aggregate principal amount of $200,000. The obligations under the New Revolver are secured by substantially all of the assets of the Company and its
subsidiaries.
The
 
New Revolver matures on February 12, 2031 and is subject to the usual and customary affirmative and negative covenants for facilities and transactions of this type. The New Revolver bears interest at a rate per annum equal to either of the following, plus, in each case, an applicable margin ranging from
0.50
% to
1.25
%, with respect base rate borrowings and
1.50
% to
2.25
% with respect to SOFR borrowings, in each case, based on our total net leverage ratio: (a) the base rate and (b) a benchmark reference rate. The New Revolver is subject to an annual unused line fee which shall accrue at a rate ranging from
0.20
% to
0.35
%, based on the total net leverage ratio. For additional information regarding the terms of the New Revolver, including interest rates, maturities, covenants and collateral, refer to Note 8—Debt Obligations in our Annual Report on Form
10-K
for the
year ended December 31, 2025.
 
 
As
of March 31, 2026, there were no borrowings outstanding under the New Revolver and $8,453 of letters of credit were outstanding.
The Old
 
Revolver was legally terminated and replaced with the New Revolver
,
and the Company accounted fo
r the repl
acement as a modification of a revolving-debt arrangement. The analysis was based on a comparison of borrowing capacity under the
Old
 Revolver and the New Revolver. Accordingly, the unamortized deferred financing costs of $
1,598
associated with the
 Old
 Revolver continue to be deferred and are amortized over the term of the New Revolver.
In connection with entry into the New Revolver, the Company incurred approximately $2,919 of lender and third-party
fees.