Quarterly report pursuant to Section 13 or 15(d)

FAIR VALUE DISCLOSURES

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FAIR VALUE DISCLOSURES
 9 Months Ended
Sep. 30, 2023
Fair Value Disclosures [Abstract]  
FAIR VALUE DISCLOSURES FAIR VALUE DISCLOSURES
The fair value of an asset or liability is the price that would be received to sell an asset or transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company utilizes a fair value hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value and defines three levels of inputs that may be used to measure fair value. The fair values of the Company’s cash and cash equivalents, accounts receivable and accounts payable approximate their carrying values due to the short-term nature of these items.
Assets and liabilities subject to fair value measurement are categorized into one of three different levels depending on the observability of the inputs employed in the measurement, as follows:
•Level 1 – observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.
•Level 2 – inputs that reflect quoted prices for identical assets or liabilities in markets which are not active; quoted prices for similar assets or liabilities in active markets; inputs other than quoted prices that are observable for the asset or liability; or inputs that are derived principally from or corroborated by observable market data by correlation or other means.
•Level 3 – unobservable inputs reflecting the Company’s own assumptions incorporated in valuation techniques used to determine fair value. These assumptions are required to be consistent with market participant assumptions that are reasonably available.
Fair Value of Debt
The fair value of the Company’s debt has been estimated in accordance with the accounting standard regarding fair value. The fair value of the Company’s long-term debt was estimated using discounted cash flow analysis based on estimated current rates for similar types of arrangements. Considerable judgment was required in developing certain of the estimates of fair value, and, accordingly, the estimates presented herein are not necessarily indicative of the amounts that the Company could realize in a current market exchange.
The carrying and fair values of the Company’s debt are as follows (in thousands):
Carrying
Amount		 Level 1 Level 2 Level 3
September 30, 2023
LIABILITIES
6.875% Senior Notes(1)
$ 393,826  $ —  $ 374,747  $ — 
NatWest(2)
150,176  —  150,492  — 
$ 544,002  $ —  $ 525,239  $ — 
December 31, 2022
LIABILITIES
6.875% Senior Notes(1)
$ 392,763  $ —  $ 366,629  $ — 
Lombard Debt(3)
118,658  —  120,358  — 
$ 511,421  $ —  $ 486,987  $ — 
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(1)As of September 30, 2023 and December 31, 2022, the carrying values were net of unamortized deferred financing fees of $6.2 million and $7.2 million respectively.
(2)As of September 30, 2023, the carrying values of unamortized deferred financing fees related to the NatWest Debt were $8.4 million.
(3)As of December 31, 2022, the carrying values of unamortized discounts related to the Lombard Debt were $7.0 million.