Advantage Solutions(ADV) - 2024 Q4 - Annual Report

Indebtedness and Credit Facilities - As of December 31, 2024, the company had total indebtedness of $1.7 billion, excluding debt issuance costs, and$ 44.1 million in letters of credit outstanding[159] - The company could incur an additional $455.9 million under its revolving credit facility, subject to covenant compliance[160] - The company’s credit ratings may impact borrowing costs and access to capital markets, with potential downgrades posing risks to liquidity and capital position[161] - The company’s variable rate indebtedness exposes it to interest rate risk, which could significantly increase debt service obligations if interest rates rise[162] Foreign Exchange and Interest Rate Exposure - A 10% unfavorable change in foreign exchange rates could increase the company's consolidated loss before taxes by approximately$ 3.5 million for the year ended December 31, 2024[379] - The company has interest rate collar contracts with an aggregate notional value of $850.0 million to manage exposure to interest rate movements[382] - A change of one-eighth percentage point in the weighted average interest rate above the floor of 0.75% would have resulted in an increase of$ 0.8 million in interest expense for the year ended December 31, 2024[383] Legal and Regulatory Risks - The company is subject to various litigation and regulatory proceedings that could adversely affect its financial results[164] - Increased costs associated with being a public company include legal, accounting, and insurance expenses, which were not incurred as a private company[167] Shareholder Impact - The company may issue additional shares or convertible securities, which could result in ownership dilution for existing shareholders[170]