v3.26.1
Debt
 6 Months Ended
Jun. 27, 2026
Debt Disclosure [Abstract]  
Debt DEBT
Total debt consisted of the following:
Debt DescriptionMaturityInterest Rate as of June 27, 2026Carrying Value as of June 27, 2026Carrying Value as of December 27, 2025
ABL FacilityMay 28, 20315.16%433 429 
2021 Incremental Term Loan Facility (net of $1 and $1 of unamortized deferred financing costs, respectively)
November 22, 20285.37%609 609 
2024 Incremental Term Loan Facility (net of $7 and $7 of unamortized deferred financing costs, respectively)
October 3, 20315.37%709 712 
Senior Notes due 2028 (net of $2 and $3 of unamortized deferred financing costs, respectively)
September 15, 20286.88%498 497 
Senior Notes due 2029 (net of $3 and $4 of unamortized deferred financing costs, respectively)
February 15, 20294.75%897 896 
Senior Notes due 2030 (net of $2 and $2 of unamortized deferred financing costs, respectively)
June 1, 20304.63%498 498 
Senior Notes due 2032 (net of $4 and $4 of unamortized deferred financing costs, respectively)
January 15, 20327.25%496 496 
Senior Notes due 2033 (net of $2 and $2 of unamortized deferred financing costs, respectively)
April 15, 20335.75%498 498 
Obligations under financing leases2026–2033
1.26%-8.31%
591 557 
Other debtJanuary 1, 20315.75%8 8 
Total debt5,237 5,200 
Current portion of long-term debt
(150)(137)
Long-term debt$5,087 $5,063 
ABL Facility
The Company’s asset-based senior secured revolving credit facility (the “ABL Facility”) provides the Company with loan commitments having a maximum aggregate principal amount of $2,500 million. Extensions of credit under the ABL Facility are subject to availability under a borrowing base comprised of various percentages of the value of eligible accounts receivable, inventory, transportation equipment and certain unrestricted cash and cash equivalents.
On May 28, 2026, USF amended the ABL Facility to increase the total aggregate amount of commitments from $2,300 million to $2,500 million. The maturity date of the ABL Facility was extended to May 28, 2031, subject to a springing maturity date in the event that more than $300 million of aggregate principal amount of earlier maturing indebtedness under the Term Loan Facilities or any of USF’s senior notes remains outstanding for which a reserve is not maintained on a date that is 60 days prior to such earlier maturity date for such maturing indebtedness.
The Company incurred $4 million of lender fees and third party costs in connection with the ABL Facility amendment which were capitalized as deferred financing costs recorded in other assets in the Company’s Consolidated Balance Sheet. These deferred financing costs will be amortized through May 28, 2031, the ABL Facility maturity date.
Borrowings under the ABL Facility bear interest at a rate per annum equal to, at the Company’s periodic election, Term Secured Overnight Financing Rate (“Term SOFR”) or Adjusted Borrowing Rate (“ABR”), as described in the ABL Facility, plus the following margin:
Borrowing Election
Margin based on USF’s excess availability under the ABL Facility
Margin at June 27, 2026
SOFR Floor
ABR
0.00% to 0.25%
0.00%
N/A
Term SOFR
1.00% to 1.25%
1.00%
0.00%
The Company had outstanding borrowings totaling $433 million, and had outstanding letters of credit totaling $315 million, under the ABL Facility as of June 27, 2026. The outstanding letters of credit primarily relate to securing USF’s obligations with respect to certain real estate leases. There was available capacity of $1,752 million under the ABL Facility as of June 27, 2026.
Term Loan Facilities
The Amended and Restated Term Loan Credit Agreement, dated as of June 27, 2016 (as amended, the “Term Loan Credit Agreement”), provides the Company with an incremental senior secured term loan borrowed in October 2024 (the “2024 Incremental Term Loan Facility”), an incremental senior secured term loan borrowed in November 2021 (the “2021 Incremental Term Loan Facility” and, together with the 2024 Incremental Term Loan Facility, the “Term Loan Facilities”) and the right to request additional incremental senior secured term loan commitments.
Borrowings under the Term Loan Credit Agreement bear interest at a rate per annum equal to, at the Company’s periodic election, Term SOFR or ABR, as described in the Term Loan Credit Agreement, plus the following margin:
Borrowing Election
Margin
SOFR Floor
ABR
0.75%
N/A
Term SOFR
1.75%0.00%
USF’s maximum exposure to the variable component of the interest rate on the Term Loan Facilities is 5% on the notional amount covered by the interest rate cap described above. Borrowings under the Term Loan Credit Agreement may be voluntarily prepaid without penalty or premium, other than customary breakage costs related to prepayments of SOFR-based borrowings. The Term Loan Credit Agreement requires mandatory repayment if certain assets are sold.
Senior Notes
Each of the Company’s outstanding senior notes are redeemable, at USF’s option, in whole or in part, at a price multiplied by the remaining principal, plus accrued and unpaid interest, if any, to but not including the applicable redemption date. The senior notes are unconditionally guaranteed on a senior unsecured basis by each of the Company’s existing and future wholly-owned domestic subsidiaries that provide guarantees under the Company’s senior secured term loan credit facilities.
As of June 27, 2026, the Term Loan Facilities, ABL Facility and certain variable rate finance leases, which were approximately 34% of the Company’s total debt, bore interest at a floating rate.
Debt Covenants
The agreements governing our indebtedness contain customary covenants. These include, among other things, covenants that may restrict our ability to incur certain additional indebtedness, create or permit liens on assets, pay dividends, or engage in mergers or consolidations. The Company had approximately $3.1 billion of restricted payment capacity under these covenants, and approximately $1.2 billion of its net assets were restricted after taking into consideration the net deferred tax assets and intercompany balances that eliminate in consolidation as of June 27, 2026.