v3.25.1
Long-term Debt and Letters of Credit
3 Months Ended
Mar. 31, 2025
Debt Disclosure [Abstract]  
Long-term Debt and Letters of Credit

(8) Long-term Debt and Letters of Credit

Long-term debt was as follows:

 

 

 

As of

 

 

 

March 31, 2025

 

 

December 30, 2024

 

 

 

Interest Rate

 

Principal
Outstanding

 

 

Interest Rate

 

Principal
Outstanding

 

 

 

(In thousands, except interest rates)

 

Senior Notes due March 2029

 

 

4.00

 

%

 

$

500,000

 

 

 

4.00

 

%

 

$

500,000

 

Term Loan due May 2030

 

 

6.57

 

 

 

 

344,768

 

 

 

6.59

 

 

 

 

345,634

 

Asia ABL Revolving Loan due June 2028

 

 

5.62

 

 

 

 

80,000

 

 

 

5.64

 

 

 

 

80,000

 

Other

 

 

5.99

 

 

 

 

2,230

 

 

 

5.99

 

 

 

 

2,311

 

Total debt

 

 

 

 

 

 

926,998

 

 

 

 

 

 

 

927,945

 

Less: Unamortized debt issuance costs

 

 

 

 

 

 

(6,625

)

 

 

 

 

 

 

(6,951

)

Less: Unamortized debt discount

 

 

 

 

 

 

(2,727

)

 

 

 

 

 

 

(2,840

)

Subtotal

 

 

 

 

 

 

917,646

 

 

 

 

 

 

 

918,154

 

Less: Current maturities

 

 

 

 

 

 

(3,800

)

 

 

 

 

 

 

(3,795

)

Long-term debt, less current maturities

 

 

 

 

 

$

913,846

 

 

 

 

 

 

$

914,359

 

Debt Covenants

Borrowings under the Senior Notes due 2029 and Term Loan Facility due 2030 (Term Loan Facility) are subject to certain affirmative and negative covenants, including limitations on indebtedness, corporate transactions, investments, dispositions, and restricted payments.

Under the occurrence of certain events, the U.S. Asset-Based Lending Credit Agreement (U.S. ABL) and Asia Asset-Based Lending Credit Agreement (Asia ABL) (collectively, the ABL Revolving Loans) are subject to various financial covenants, including leverage and fixed charge coverage ratios.

Debt Issuance Costs and Debt Discount

Remaining unamortized debt issuance costs and debt discount were as follows:

 

 

 

As of

 

 

March 31, 2025

 

December 30, 2024

 

 

Debt
Issuance Costs

 

 

Debt
Discount

 

 

Effective
Interest Rate

 

Debt
Issuance Costs

 

 

Debt
Discount

 

 

Effective
Interest Rate

 

 

(In thousands, except interest rates)

Senior Notes due March 2029

 

$

3,176

 

 

$

 

 

 

4.18

 

%

 

$

3,362

 

 

$

 

 

 

4.18

 

%

Term Loan due May 2030

 

 

3,449

 

 

 

2,727

 

 

 

8.01

 

 

 

 

3,589

 

 

 

2,840

 

 

 

8.01

 

 

Total

 

$

6,625

 

 

$

2,727

 

 

 

 

 

 

$

6,951

 

 

$

2,840

 

 

 

 

 

The above debt issuance costs and debt discount are recorded as a reduction of the debt and are amortized into interest expense using an effective interest rate over the duration of the debt.

Remaining unamortized debt issuance costs for the ABL Revolving Loans of $1,147 and $1,239 as of March 31, 2025 and December 30, 2024, respectively, are included in deposits and other non-current assets and are amortized to interest expense over the duration of the ABL Revolving Loans using the straight-line method of amortization.

As of March 31, 2025, the remaining weighted average amortization period for all unamortized debt issuance costs and debt discount was 4.6 years.