Tecnoglass Inc. Debt Disclosure

Note 14. Debt

 

The Company’s debt is comprised of the following:

Schedule of Long Term Debt 

		December 31, 2025				December 31, 2024
Revolving lines of credit		$	387			$	600
Finance lease			41				111
Other current debt			-				378
Senior Secured Credit Facility			174,000				110,000
Less: Deferred cost of financing			(2,799	)			(1,782	)
Total obligations under borrowing arrangements			171,629				109,307
Less: Current portion of long-term debt and other current borrowings			427				1,087
Long-term debt		$	171,202			$	108,220

 

In September 2025, the Company entered into a new Senior Secured Credit Facility , transitioning from a term loan and revolving facility structure to a fully committed revolving facility structure which allowed the company (i) increase total committed borrowing capacity from $150 million to $500 million, (ii) reduce borrowing costs by approximately 25 basis points, and (iii) extend the initial maturity date by five years to December 2030. Borrowings under the new facility bear interest at the Secured Overnight Financing Rate (SOFR) with no floor, plus a spread of 1.25 % based on the Company’s net leverage ratio (previously 1.50 % over SOFR). The effective interest rate for the facility, including deferred issuance costs, is 6.98 % as of December 31, 2025. The Company incurred total costs and fees of $2,783 in lender fees which were capitalized as deferred financing costs, and are presented as a deduction from the related debt liability.

 

The transaction was accounted for as a debt extinguishment under ASC 470-50. Accordingly, the prior term-loan and revolving credit facilities were derecognized, and the new revolving facility was initially recognized at its principal amount, net of deferred financing costs. As a result, the Company recognized a loss on extinguishment of debt of $1,354, representing $1,302 for the write-off of the remaining unamortized deferred financing costs related to the prior term-loan and revolving credit facilities, and $52 of termination costs associated with closing the prior facility. Cash proceeds from the new facility and repayments of the extinguished debt are reflected within financing activities in the condensed consolidated statements of cash flows. Of the $2,783 of total fees incurred, $1,803 were deducted from the gross proceeds and presented net within “Proceeds from debt,” with the remaining $980 recorded as cash outflows classified under “Deferred financing costs and debt issuance fees” within financing activities. During Q4 2025, the company drew down $60 million from its revolving credit facility.

 

Maturities of long-term debt and other current borrowings as of December 31, 2025, are as follows:

Schedule of Maturities of Long Term Debt  

2026			427
2027			-
2028			-
2029			-
2030			174,000
Total		$	174,427

 

 

The Company’s loans have maturities ranging from a few weeks to 3 years. Our credit facilities bear interest at a weighted average of 5.15% as of December 31, 2025.

 

Interest expense and deferred financing cost is comprised of the following:

Schedule of Interest Expense and Deferred Financing Cost 

		2025				2024				2023
		Years ended December 31,
		2025				2024				2023
Interest expense		$	5,965			$	6,219			$	7,935
Deferred financing cost			935				1,214				1,243
Derivative financial instrument gain			(3,455	)			-				-
Interest expense and deferred financing cost		$	3,445			$	7,433			$	9,178