Company: CODI-PB
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0001345126-25-000015
Chunk: 246

Company: Compass Diversified Holdings
Filing Date: 2025-02-27
Form: 10-K
Item: Item 16
Chunk 246
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 balance sheets.  

F-35

COMPASS DIVERSIFIED HOLDINGSNOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

The following table summarizes debt issuance costs at December 31, 2024 and December 31, 2023, and the balance sheet classification in each of the periods presents (in thousands):  December 31,20242023Deferred debt issuance costs$32,526 $32,526 Accumulated amortization(17,797)(13,779)Deferred debt issuance costs, net$14,729 $18,747 Balance sheet classification:Other noncurrent assets$4,019 $5,626 Long-term debt10,710 13,121 $14,729 $18,747 CovenantsThe Company is subject to certain customary affirmative and restrictive covenants arising under the 2022 Credit Facility. The following table reflects required and actual financial ratios as of December 31, 2024 included as part of the affirmative covenants in the 2022 Credit Facility:Description of Required Covenant RatioCovenant Ratio RequirementActual RatioFixed Charge Coverage RatioGreater than or equal to 1.50: 1.002.43:1:00Total Secured Debt to EBITDA RatioLess than or equal to 3.50: 1.000.92:1:00Total Debt to EBITDA RatioLess than or equal to 5.00: 1.003.58:1:00The Company exercised an option under our 2022 Credit Facility to increase our Consolidated Total Leverage Ratio to 5.75:1.00 as of December 31, 2022. This ratio declined to 5.50:1.00 on June 30, 2023, and to 5.00:1.00 on December 31, 2023.A breach of any of these covenants will be an event of default under the 2022 Credit Facility. Upon the occurrence of an event of default under the 2022 Credit Facility, the 2022 Revolving Credit Facility may be terminated, and all outstanding loans and other obligations under the 2022 Credit Facility may become immediately due and payable and any letters of credit then outstanding may be required to be cash collateralized, and the Agent and the Lenders may exercise any rights or remedies available to them under the 2022 Credit Facility. Any such event would materially impair the