Company: ALIT
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001628280-25-049916
Chunk: 57

Company: Alight, Inc. / Delaware
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 57
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25% to SOFR + 1.75%.Interest rates on the Term Loan borrowings are based on SOFR plus a margin. The Company is required to make principal payments at the end of each fiscal quarter based on defined terms in the Credit Agreement with the remaining principal balances due on the maturity dates.The Company utilized swap agreements to fix a portion of the floating interest rates through December 2026 (see Note 13 “Derivative Financial Instruments”).During the three and nine months ended September 30, 2025, the Company made total principal payments on the Incremental Term Loans of $5 million and $15 million, respectively. During the three and nine months ended September 30, 2024, the Company made total principal payments on the Incremental Term Loans of $6 million and $19 million, respectively. Revolving Credit FacilityIn August 2021, the Company entered into a $294 million revolving credit facility with a maturity date of August 31, 2026. In March 2023, the Company amended and upsized the revolving credit facility to $300 million and updated the benchmark reference rate from LIBOR to Term SOFR. In May 2025, the Company entered into Amendment No. 12 of its credit agreement, which increased the aggregate principal amount of its revolving credit facility to $330 million and extended the maturity date to May 31, 2030. At September 30, 2025, an immaterial amount of unused letters of credit related to insurance policies were issued under the revolving credit facility and there were no borrowings. The Company is required to make periodic payments for commitment fees and interest related to the revolving credit facility and outstanding letters of credit. During the three months ended September 30, 2025, the Company did not make payments related to these fees. During the nine months ended September 30, 2025, the Company made payments related to these fees of $1 million. During the three and nine months ended September 30, 2024, the Company made immaterial payments related to these fees.Financing Fees, Premiums and Interest Expense The Company capitalized financing fees and premiums related to the Term Loan and Revolver issued. These financing fees and premiums were recorded as an offset to the aggregate debt balances and are being amortized over the respective loan terms.Total interest expense related to the debt instruments for the three months ended September 30, 2025 and 2024, was $32 million and $40 million, respectively. Total interest