MAXIMUS, INC.
For the period ended Mar 31, 2026. Filed May 7, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed May 7, 2026
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7. Debt and Derivatives
- DEBT AND DERIVATIVES
| Table 7.1: Details of Debt | ||
|---|---|---|
| March 31, 2026 | September 30, 2025 | |
| (in thousands) | ||
| Term Loan A (TLA) | $830,625 | $853,125 |
| Term Loan B (TLB) | 491,250 | 493,750 |
| Revolver | 225,000 | — |
| Total debt principal | 1,546,875 | 1,346,875 |
| Less: Unamortized debt-issuance costs and discounts | (11,129) | (12,602) |
| Total debt | 1,535,746 | 1,334,273 |
| Less: Current portion of long-term debt | (63,930) | (52,680) |
| Long-term debt | $1,471,816 | $1,281,593 |
Our credit agreements require us to comply with a number of covenants, including leverage and interest coverage ratios. At March 31, 2026, we are in compliance with all covenants. We do not believe that the covenants represent a significant restriction on our ability to successfully operate the business or to pay dividends.
The following table sets forth future minimum principal payments due under our debt obligations as of March 31, 2026 for the remainder of fiscal year 2026 through fiscal year 2031:
| Table 7.2: Details of Future Minimum Principal Payments Due | |
|---|---|
| Amount Due | |
| (in thousands) | |
| April 1, 2026 through September 30, 2026 | $30,625 |
| Year ended September 30, 2027 | 72,500 |
| Year ended September 30, 2028 | 78,125 |
| Year ended September 30, 2029 | 891,875 |
| Year ended September 30, 2030 | 5,000 |
| Years ended thereafter | 468,750 |
| Total payments | $1,546,875 |
Interest Rate Derivative Instruments
We utilize interest rate swaps that are designed to reduce our risk from changes in interest rates, which we have designated as cash flow hedges. The following table presents our interest rate swaps:
| Table 7.3: Interest Rate Derivative Instruments | ||||
|---|---|---|---|---|
| As of March 31, 2026 | ||||
| Debt Principal Hedged | Notional Amount | Fixed Interest Rate | Effective | Expiry |
| (in thousands) | ||||
| Term Loan A | $500,000 | 2.31% | Present | May 2026 |
| Term Loan B | $75,000 | 3.72% | Present | September 2026 |
| Term Loan B | $75,000 | 3.62% | Present | September 2027 |
| Term Loan A | $150,000 | 3.14% | June 2026 | September 2027 |
| Term Loan A | $150,000 | 3.28% | June 2026 | September 2028 |
The balance of the debt pays interest based upon the Secured Overnight Financing Rate (SOFR). At March 31, 2026, our effective interest rate, including the original issuance costs and discount rate, was 5.0%.
At March 31, 2026, we recorded an asset of $3.2 million and a liability of $0.2 million to reflect the fair value of our interest rate swap agreements, compared to an asset of $5.5 million and a liability of $1.7 million at September 30, 2025. The assets and liabilities are recorded as "other assets" and "other liabilities," respectively, within our consolidated balance sheets. As these instruments are effective cash flow hedges, gains and losses based upon interest rate fluctuations are recorded within "accumulated other comprehensive loss" on our consolidated financial statements.
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