Company: GHC
Filing Date: 2025-10-29
Form Type: 10-Q
Source: 0001628280-25-046925
Chunk: 145

Company: Graham Holdings Co
Filing Date: 2025-10-29
Form: 10-Q
Item: Part I, Item 8
Chunk 145
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 working capital at September 30, 2025 includes the Company’s $400 million senior unsecured fixed rate notes that are due on June 1, 2026, which the Company intends to refinance on or before the due date. The Company maintains working capital levels consistent with its underlying business requirements and consistently generates cash from operations in excess of required interest or principal payments.

At September 30, 2025 and December 31, 2024, the Company had borrowings outstanding of $731.9 million and $748.2 million, respectively. The Company’s borrowings at September 30, 2025 were mostly from $400.0 million of 5.75% unsecured notes due June 1, 2026, a term loan of $134.6 million, $67.2 million in outstanding borrowings under the Company’s revolving credit facility, and real estate and capital term loans of $120.0 million at the automotive subsidiary. The Company’s borrowings at December 31, 2024 were mostly from $400.0 million of 5.75% unsecured notes due June 1, 2026, $62.8 million in outstanding borrowings under the Company’s revolving credit facility, a term loan of $140.1 million, and real estate and capital term loans of $127.6 million at the automotive subsidiary. The interest on the $400.0 million of 5.75% unsecured notes is payable semiannually on June 1 and December 1. 

During the nine months ended September 30, 2025 and 2024, the Company had average borrowings outstanding of approximately $835.2 million and $819.6 million, respectively, at average annual interest rates of approximately 6.0% and 6.4%, respectively. During the nine months ended September 30, 2025 and 2024, the Company incurred net interest expense of $111.3 million and $130.0 million, respectively. Included in the interest expense for the nine months ended September 30, 2025 and 2024 is $68.3 million and $85.1 million, respectively, to adjust the fair value of the mandatorily redeemable noncontrolling interest (see Notes 7 and 8). 

On February 25, 2025, the Company and a group of minority shareholders entered into an agreement to settle a significant portion of the mandatorily redeemable noncontrolling interest