v3.26.1
Debt
 9 Months Ended
Jul. 03, 2026
Debt Disclosure [Abstract]  
Debt Debt
Debt consisted of the following:
As of
(Amounts in millions)July 3, 2026October 3, 2025
Term Loan A$1,400 $— 
Term Loan B1,466 3,000 
Senior notes1,000 1,000 
Other9 8 
Total debt3,875 4,008 
Unamortized original issue discount and unamortized deferred financing costs(50)(65)
Total debt, net of original issue discount and deferred financing costs3,825 3,943 
Less current portion of long-term debt(54)(42)
Total long-term debt, net of current portion$3,771 $3,901 
On September 27, 2024, we entered into a senior secured credit facility (the “Credit Facility”) consisting of a $3,750 million term facility (“Term Loan”) maturing September 27, 2031 and an $850 million revolving facility (“Revolver”), including a $200 million letter of credit subfacility and a $100 million swingline subfacility, maturing September 27, 2029.
On April 24, 2026, we entered into the first amendment to the Credit Facility (the “Amendment”). The Amendment established a new $1,400 million senior secured term loan A facility (“Term Loan A”) due April 24, 2031, amended the existing Term Loan, including a reduction in outstanding principal and revised terms, into a new $1,591 million senior secured term loan B facility (“Term Loan B”) due September 27, 2031. The Amendment also increased the Revolver by $150 million from $850 million to $1 billion, including a $50 million increase to the letter of credit subfacility from $200 million to $250 million, and a $50 million increase to the swingline subfacility from $100 million to $150 million. The Revolver, as amended, matures on April 24, 2031.
Quarterly principal amortization payments on Term Loan A are equal to (a) 0.625% of the original principal amount of Term Loan A commencing September 30, 2026 through June 30, 2028, (b) 1.25% of the original principal amount of Term Loan A from September 30, 2028 through June 30, 2030, and (c) 1.875% of the original principal amount of Term Loan A thereafter with the remainder of the principal being due at maturity.
The Term Loan A interest rate per annum is, at our option, equal to either the Alternate Base Rate (“ABR”) plus an interest rate margin of 0.25% to 1.00% or the Adjusted Term Secured Overnight Financing Rate (“Term SOFR”) plus an interest rate margin of 1.25% to 2.00% based on our first lien leverage ratio.
Quarterly principal amortization payments on Term Loan B are equal to 0.25% of the original principal amount of Term Loan B commencing September 30, 2026, with the remainder of the principal being due at maturity. On June 30, 2026, we made a $125 million voluntary principal payment on Term Loan B.
The Term Loan B interest rate per annum is, at our option, equal to either the ABR plus a 0.75% interest rate margin or the Term SOFR plus a 1.75% interest rate margin. Prior to the Amendment, quarterly principal amortization payments on the Term Loan were equal to 0.25% of the original principal amount of the Term Loan with the remainder of the principal being due at maturity with an interest rate per annum, at our option, equal to either the ABR plus a 1.25% interest rate margin or the Term SOFR plus a 2.25% interest rate margin, which could be reduced by 0.25% in the event certain corporate ratings were achieved.
The Revolver interest rate per annum is, at our option, equal to either the ABR or Canadian Prime Rate plus an interest rate margin of 0.25% to 1.00% or the Term SOFR, Daily Simple Secured Overnight Financing Rate, EURIBOR, Daily Simple Sterling Overnight Index Average (“SONIA”) or Term Canadian Overnight Report Rate Average (“CORRA”) plus an interest rate margin of 1.25% to 2.00% based on our first lien leverage ratio. Prior to the Amendment, the Revolver interest rate per annum was, at our option, equal to either the ABR or Canadian Prime Rate plus an interest rate margin of 0.50% to 1.25% or the Term SOFR, EURIBOR, or CORRA plus an interest rate margin of 1.50% to 2.25% based on our first lien leverage ratio.
As of July 3, 2026 and October 3, 2025, the available borrowing capacity under the Credit Facility was $917 million and $766 million, respectively, and included $83 million and $84 million, respectively, in issued letters of credit. As of July 3, 2026 and October 3, 2025, there were no amounts borrowed under the Revolver.
In August 2024, the Company completed an offering of $1,000 million in aggregate principal amount of 7.250% senior notes due August 1, 2032 (the “Senior Notes”). Interest is payable on February 1 and August 1 of each year, which commenced on February 1, 2025.
The Credit Facility and the Senior Notes are guaranteed by substantially all of our wholly owned material domestic restricted subsidiaries, subject to customary exceptions set forth in the credit agreement and indenture, respectively.
Each of the credit agreement and indenture requires us to comply with certain representations and warranties, customary affirmative and negative covenants and, in the case of the Term Loan A and Revolver, under certain circumstances, a financial covenant. We were in compliance with all covenants as of July 3, 2026.
Cash Flow Hedges
The Company utilizes derivative financial instruments to manage interest rate risk related to its variable rate debt. The Company’s objective is to manage its exposure to interest rate movements and reduce volatility of interest expense. The Company entered into several interest rate swaps with an aggregate notional value of $1.3 billion that were designated as cash flow hedges, in which the Company will pay at the fixed rate and receive payment at a floating rate indexed to the three-month term SOFR through maturity. The swaps mature at various dates through January 31, 2027. The change in fair value of the interest rate swaps is presented within accumulated other comprehensive income on our consolidated balance sheet and subsequently reclassified into interest expense and other, net on our consolidated statements of operations and comprehensive income in the period when the hedged transaction affects earnings.