Long-Term Obligations |
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Jun. 28, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Long-Term Obligations | 5. LONG-TERM OBLIGATIONS Long-term obligations consisted of the following as of June 28, 2025 and December 28, 2024, respectively (dollar amounts in thousands):
The 2021 Extended Term Loan bears interest, at the Company’s election, at a variable interest rate based on either SOFR (subject to a minimum of 0.50%), or an alternative base rate ("ABR") (subject to a minimum of 2.00%) for the interest period relevant to such borrowing, plus a credit spread adjustment ("CSA") of 0.10% and an applicable margin of 3.75% for loans accruing interest based on SOFR, and an applicable margin of 2.75% for loans accruing interest based on ABR. The Revolving Credit Facility bears interest, at the Company’s election, at a variable interest rate based on either SOFR (subject to a minimum of 0.50%) or ABR (subject to a minimum of 2.00%), for the interest period relevant to such borrowing, plus a CSA of 0.10% and an applicable margin of 3.75% for loans accruing interest based on SOFR, and an applicable margin of 2.75% for loans accruing interest based on ABR. As of June 28, 2025, the principal amount of the 2021 Extended Term Loan and borrowings under the Revolving Credit Facility each accrued interest at a rate of 8.18%.
The Second Lien Term Loan bears interest at a rate per annum equal to, at the Company’s election, either (1) an applicable margin (equal to 6.00%) plus a base rate determined by reference to the highest of (a) 0.50% per annum plus the Federal Funds Effective Rate, (b) the Prime Rate and (c) the SOFR rate for an interest period of one month plus a CSA depending on the interest period plus 1.00%; or (2) an applicable margin (equal to 7.00%) plus SOFR and a CSA depending on the interest period; provided that such rate is not lower than a floor of 0.50%. As of June 28, 2025, the principal amount of the Second Lien Term Loan accrued interest at a rate of 11.48%. Debt issuance costs related to the term loans are recorded as a direct deduction from the carrying amount of the debt. The balances for debt issuance costs related to the term loans as of June 28, 2025 and December 28, 2024 were $22.3 million and $24.7 million, respectively. Debt issuance costs related to the Revolving Credit Facility are recorded within other long-term assets. The balances for debt issuance costs related to the Revolving Credit Facility as of June 28, 2025 and December 28, 2024 were $1.0 million and $1.6 million, respectively. The Company recognized interest expense related to the amortization of debt issuance costs of $1.5 million and $3.1 million for the three and six-month periods ended June 28, 2025, respectively, and $1.1 million and $2.2 million for the three and six-month periods ended June 29, 2024, respectively. Issued letters of credit as of June 28, 2025 and December 28, 2024 were $23.3 million and $32.3 million, respectively. There were no swingline loans outstanding as of June 28, 2025 or December 28, 2024. Borrowing capacity under the Company's Revolving Credit Facility was approximately $147.0 million as of June 28, 2025 and $138.0 million as of December 28, 2024. Available borrowing capacity under the Revolving Credit Facility is subject to a maintenance leverage covenant that becomes effective if more than 30% of the total commitment is utilized. The fair value of the Company's long-term obligations was estimated using market-observable inputs from the Company’s comparable peers with public debt, including quoted prices in active markets, which are considered Level 2 inputs. The aggregate fair value of the Company's long-term obligations was $1,272.8 million at June 28, 2025. The Company was in compliance with all financial covenants and restrictions under the foregoing instruments at June 28, 2025. |
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