v3.26.1
Debt
 6 Months Ended
Jun. 25, 2026
Debt Disclosure [Abstract]  
Debt Debt
On June 24, 2026, the Company refinanced its senior secured term loan credit facility due February 14, 2027 (“2016 Term Loan Facility”) by entering into a new $200.0 million senior secured term loan credit facility due June 24, 2033 (“2026 Term Loan Facility”). Proceeds from the 2026 Term Loan Facility were used to repay the remaining $197.1 million outstanding under the 2016 Term Loan Facility. The 2026 Term Loan Facility includes an incremental facility feature that allows the Company, under certain circumstances, to increase the size of the facility by an amount up to the sum of (i) the greater of (x) $530.0 million or (y) 100% of Consolidated EBITDA (as defined in the 2026 Term Loan Facility), plus (ii) an additional amount based on certain leverage incurrence conditions, in each case, subject to certain additional adjustments.
In connection with the refinancing of the 2016 Term Loan Facility, the Company recognized a $1.1 million loss on extinguishment of debt during the thirteen weeks ended June 25, 2026. The Company incurred $4.7 million of debt issuance costs and original issue discounts related to the 2026 Term Loan Facility.
On June 24, 2026, the Company refinanced its senior secured asset-based loan (“ABL”) facility maturing on August 4, 2027 (“2016 ABL Facility”) by entering into a new senior secured ABL facility maturing on June 24, 2031 (“2026 ABL Facility”). The aggregate revolving commitments under the 2026 ABL Facility remain the same as under the 2016 ABL Facility at $800.0 million. The 2026 ABL Facility allows the Company, under certain circumstances, to increase the size of the facility by an amount up to $200.0 million.
In connection with the refinancing of the 2016 ABL Facility, the Company recognized a $0.2 million loss on extinguishment of debt during the thirteen weeks ended June 25, 2026. The Company incurred $2.8 million of deferred financing costs related to the 2026 ABL Facility.
The following table summarizes the Company’s long-term debt as of June 25, 2026 and December 25, 2025:
dollars in thousands
Interest Rate Per Annum at June 25, 2026
June 25, 2026December 25, 2025
Credit Facilities:
2026 Term Loan Facility5.64%Variable$200,000 $— 
2016 Term Loan Facility— 198,190 
2026 ABL Facility4.77%Variable— — 
2016 ABL Facility— — 
Total outstanding borrowings
200,000 198,190 
Less: unamortized discount and debt issuance costs
4,672 1,972 
Total long-term debt
195,328 196,218 
Less: current portion of long-term debt
1,500 2,629 
Total long-term debt, less current portion
$193,828 $193,589 
The following table summarizes scheduled maturities of the Company’s debt as of June 25, 2026:
in thousandsAmount
Twenty-seven weeks ending December 31, 2026$1,000 
20271,500 
20282,000 
20292,000 
20302,000 
Thereafter191,500 
Total minimum debt payments$200,000 
Components of interest expense are as follows for the periods presented:
Thirteen Weeks EndedTwenty-six Weeks Ended
in thousandsJune 25, 2026June 26, 2025June 25, 2026June 26, 2025
Interest expense
$3,931 $4,227 $7,906 $8,551 
Less:
Interest income (1)
5,674 1,957 7,724 3,536 
Capitalized interest
535 1,194 1,327 2,391 
Interest (income) expense, net$(2,278)$1,076 $(1,145)$2,624 
(1)For the thirteen and twenty-six weeks ended June 25, 2026, the amount includes interest income related to the Company’s cash on hand and statutory interest on International Emergency Economic Powers Act (“IEEPA”) tariff refunds. For the thirteen and twenty-six weeks ended June 26, 2025, the amount includes interest income related to the Company’s cash on hand.
Term Loan Facility
The 2026 Term Loan Facility bears interest, at the Company’s option, at an annual rate equal to Adjusted Term Secured Overnight Financing Rate (“SOFR”) or the Alternate Base Rate (“ABR”) (each as defined in the 2026 Term Loan Facility), in each case, plus an applicable margin. The applicable margin equals (i) with respect to SOFR Loans (as defined in the 2026 Term Loan Facility), 2.00% per annum and (ii) with respect to ABR Loans (as defined in the 2026 Term Loan Facility), 1.00% per annum.
All obligations under the 2026 Term Loan Facility are secured by (1) a first-priority security interest in substantially all of the property and assets of Outlets and the other guarantors under the 2026 Term Loan Facility (other than the collateral that secures the 2026 ABL Facility on a first-priority basis), with certain exceptions, and (2) a second-priority security interest in the collateral securing the 2026 ABL Facility on a first-priority basis.
ABL Facility
Borrowings under the 2026 ABL Facility bear interest, at the Company’s option, at a rate equal to Term SOFR, Daily SOFR, or the Base Rate (each as defined in the 2026 ABL Facility), in each case plus an applicable margin. The applicable margin equals (i) with respect to Term SOFR Loans, Daily SOFR Loans and Letter of Credit Fees for Standby Letters of Credit (each as defined in the 2026 ABL Facility), 1.125% per annum, (ii) with respect to Base Rate Loans (as defined in the 2026 ABL Facility), 0.125% per annum and (iii) with respect to Letter of Credit Fees for Commercial Letters of Credit (as defined in the 2026 ABL Facility), 0.75%.
The 2026 ABL Facility has actual available borrowings limited to a borrowing base comprised of eligible credit card receivables, inventory, trade receivables, cash on hand, and letter of credit exposure, each subject to specified advance rates, appraisal percentages, or reserves (each as defined in the 2026 ABL Facility). The 2026 ABL Facility is available for issuance of letters of credit and contains a sublimit of $95.0 million for standby letters of credit and commercial letters of credit combined, with available borrowings reduced by the face amount of outstanding letters of credit.
All obligations under the 2026 ABL Facility are secured by (1) a first-priority security interest in the cash and cash equivalents, accounts receivable, inventory, and related current assets of Outlets and the other guarantors under the 2026 ABL Facility, with certain exceptions, and (2) a second-priority security interest in substantially all of the other property and assets of Outlets and the other guarantors that secure the 2026 Term Loan Facility on a first-priority basis.
As of June 25, 2026, net availability under the 2026 ABL Facility was $621.8 million as reduced by letters of credit of $73.2 million.
Covenants
The credit agreements governing the 2026 Term Loan Facility and 2026 ABL Facility contain customary restrictive covenants, which, among other things and with certain exceptions, limit the Company’s ability to (i) incur additional indebtedness and liens in connection with such indebtedness, (ii) pay dividends and make certain other restricted payments, (iii) effect mergers or consolidations, (iv) enter into transactions with affiliates, (v) sell or dispose of property or assets, and (vi) engage in unrelated lines of business. In addition, these credit agreements subject the Company to certain reporting obligations and require that the Company satisfy certain financial covenants, including, among other things, a requirement that if borrowings under the 2026 ABL Facility exceed 90% of availability, the Company will maintain a certain fixed charge coverage ratio (defined as Consolidated EBITDA less non-financed capital expenditures and income taxes paid to consolidated fixed charges, in each case as more fully defined in the 2026 ABL Facility).
The 2026 Term Loan Facility has no financial maintenance covenants. The Company is currently in compliance with all covenants under the credit agreements.
Fair Value of Debt
Market risk associated with the Company’s debt relates to the potential change in fair value and negative impact to future earnings, respectively, from a change in interest rates. The aggregate fair value of debt is based primarily on the Company’s estimates of interest rates, maturities, credit risk, and underlying collateral. The estimated fair value and classification within the fair value hierarchy of the 2026 Term Loan Facility and 2016 Term Loan Facility was as follows as of June 25, 2026 and December 25, 2025, respectively:
in thousandsFair Value Hierarchy ClassificationJune 25, 2026December 25, 2025
2026 Term Loan FacilityLevel 3$198,000 $— 
2016 Term Loan FacilityLevel 3$— $197,943 
The 2026 Term Loan Facility and 2016 Term Loan Facility fair values are classified as Level 3 within the fair value hierarchy due to the use of unobservable inputs significant to the valuation, including indicative pricing from counterparties and discounted cash flow methods. No amounts were outstanding under the 2026 ABL Facility and 2016 ABL Facility as of June 25, 2026 and December 25, 2025, respectively.