Debt and Interest Management - As of September 30, 2025, borrowings under the Term Loan totaled $1,940 million, with an applicable margin of 1.25% for adjusted base rate loans and 2.25% for Term SOFR loans[195] - An assumed 10% increase/decrease in the current interest rate would increase/decrease annual interest expense by $4.9 million on the non-hedged portion of the borrowing[195] - The Company entered into a $600 million interest rate swap agreement effective September 3, 2024, paying a fixed rate of 3.61%[197] - The Company also entered into a $150 million interest rate swap agreement effective April 1, 2025, paying a fixed rate of 3.36%[198] - The Company finalized an amendment to its Credit Agreement on August 21, 2025, reducing the applicable margin on the Term Loan and RCF[196] Commodity and Currency Exposure - The Company has manufacturing and distribution facilities in multiple countries, including the Czech Republic, China, and Thailand, exposing it to foreign currency risks[199] - The Company is exposed to fluctuations in raw material costs, including nickel, zinc, aluminum, and copper, which can affect its operating results[202] - At September 30, 2025, the Company was managing $0.8 million notional value of nickel forward contracts and $0.1 million notional value of copper forward contracts[203] - The Company does not designate its derivative contracts as hedge transactions, recording mark-to-market impacts to current earnings[203] Operational Reliance - The Company has significant reliance on the performance of distributors, suppliers, and retailers, which could impact its operational performance[13]
ALH(ALH) - 2025 Q3 - Quarterly Report