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Debt
 3 Months Ended
Apr. 04, 2026
Debt Disclosure [Abstract]  
Debt
15. Debt
(in millions)April 4,
2026		January 3,
2026
Term loan - current portion$6.3 $6.3 
Debt, current portion6.3 6.3 
Revolver - long-term209.0 280.0 
Term loan - long-term236.7 238.0 
Debt, long-term445.7 518.0 
Total debt$452.0 $524.3 
Credit Facility
On December 1, 2025, the Company entered into a five-year unsecured credit agreement (the “Credit Facility”) with financial institutions as initial lenders; Bank of America, N.A. as Administrative Agent; BofA Securities, Inc., JPMorgan Chase Bank, N.A., Citibank, N.A., U.S. Bank National Association, and PNC Capital Markets LLC as joint lead arrangers and joint bookrunners; BofA Securities, Inc., JPMorgan Chase Bank, N.A., Citibank, N.A., U.S. Bank National Association, and PNC Bank National Association as co-syndication agents; and BMO Bank N.A., DNB Bank ASA, New York Branch, and KeyBank National Association as co-documentation agents.
The Credit Facility consists of a $250.0 million term loan (the “Term Loan”) and a $750.0 million revolving credit facility (the “Revolver”), with an accordion feature allowing up to $400.0 million (plus unlimited amounts if certain incurrence tests are met) in additional commitments , subject to certain conditions. The Credit Facility includes a $50.0 million letter of credit sublimit, and matures on December 1, 2030.
The Company recorded debt issuance costs of $4.6 million as a reduction to the carrying amount of the Credit Facility and amortized them to interest expense using the straight-line amortization method.
Borrowings bear interest, at the Company’s election, at either: (a) an Alternate Base Rate (“ABR”), plus a spread of 0.000% to 0.750%, or (b) Term SOFR plus a spread of 1.000% to 1.750%, based on the Company’s net leverage ratio as set forth in the Credit Facility. ABR is, for any day, a fluctuating rate per annum equal to the highest of (a) the Federal Funds Effective Rate plus 1/2 of 1%, (b) Bank of America’s “prime rate”, (c) Term SOFR plus 1.000%, or (d) a floor of 0.000%. Term SOFR equals the Term SOFR Screen Rate (as defined in the Credit Facility) for the applicable interest period, with a 0.000% floor. As of April 4, 2026, the effective interest rate on the Credit Facility was 4.68%.
The Company pays an unused fee ranging from 0.150% to 0.275% per annum on the unutilized Revolver balance, based on the Company’s net leverage ratio under the 2025 Credit Facility.
The Credit Facility contains customary covenants, including financial covenants for net leverage and interest coverage ratios, negative covenants, affirmative covenants, representations and warranties, and events of default. In the event of default, the Administrative Agent may, and at the request of required lenders shall, take either or both of the following actions: (a) immediately terminate the commitments, or (b) declare the outstanding loans immediately due and payable in full.
The Company was in compliance with all covenants related to the Credit Facility as of April 4, 2026.
As of April 4, 2026, the available borrowing capacity was $539.6 million (net of approximately $1.4 million in outstanding letters of credit) under the Credit Facility.
For the three months ended April 4, 2026 and March 29, 2025, the Company incurred total interest expense of $6.1 million and $8.8 million under the prior and current Credit Facilities, respectively.
As of April 4, 2026, the aggregate maturities of principal on the Credit Facility for each of the next five years and thereafter are as follows:
Fiscal yearAmount
(in millions)
2026 (balance of year)$4.7 
20276.3 
20286.3 
20296.3 
2030428.4 
Thereafter— 
Total$452.0