v3.26.1
BORROWINGS
 9 Months Ended
Jul. 03, 2026
Debt Disclosure [Abstract]  
BORROWINGS BORROWINGS:
Long-term borrowings, net, are summarized in the following table (in thousands):
July 3,
2026		October 3,
2025
Senior secured term loan facility, due September 2028$436,000 $477,500 
Senior secured term loan facility, due February 2031661,500 665,000 
Senior secured revolving facility, due September 2028— 26,000 
Total principal debt issued1,097,500 1,168,500 
Unamortized debt issuance costs(10,129)(11,959)
Unamortized discounts(1,237)(1,398)
Less - current portion— — 
Long-term borrowings, net of current portion$1,086,134 $1,155,143 

Credit Agreement

On September 29, 2023, the Company entered into a senior secured credit agreement, which was amended in February 2024 and May 2025 (as amended, the “Credit Agreement”). The Credit Agreement currently consists of (i) a $700 million term loan A-2 due September 2028 (“Term Loan A-2”), (ii) an $800 million term loan B-1 due February 2031 (“Term Loan B-1”), and (iii) a $300 million revolving credit facility with a maturity date of September 29, 2028 (the “Revolving Credit Facility”). The Term Loan B-1 requires $2.0 million of principal payments each quarter until the maturity date, at which point the remaining unpaid principal amount is due.

During fiscal 2025, the Company made principal repayments of $20.0 million on its Term loan A-2. During the second quarter of fiscal 2026, the Company paid principal amounts of $11.5 million and $3.5 million on its Term Loan A-2 and Term Loan B-1, respectively. Additionally, during the third quarter of fiscal 2026, the Company made principal payments of $30.0 million on its Term Loan A-2.

Under the Credit Agreement, the Company is required to maintain a maximum consolidated total net leverage ratio, as defined in the Credit Agreement, of (i) 5.00x for the fiscal quarter ended July 3, 2026 and (ii) 4.75x for the fiscal quarter ending October 2, 2026 and (iii) 4.50x for the first fiscal quarter of fiscal 2027 and each fiscal quarter thereafter through maturity.

The Credit Agreement also provided a $15 million bad debt expense adjustment to EBITDA in the fiscal quarter ended March 28, 2025 solely for the purposes of determining compliance with the financial covenants. In addition,
the Credit Agreement also established a minimum interest coverage ratio, as defined in the Credit Agreement, of at least 2.00x for the term of the Credit Agreement.

Pursuant to the Credit Agreement, the Company also agreed to limit the aggregate size of its A/R Facility (as defined in Note 13, Accounts Receivable Securitization Facility, below) and any other receivables facilities to $250 million and restrict all dividends and share repurchases, in each case until the earlier of (i) any fiscal quarter ending after October 2, 2026 so long as the Company is then in compliance with the financial covenants and (ii) when the Company achieves a maximum consolidated total net leverage ratio below or equal to 4.50x as of the last day of two consecutive quarters through the end of fiscal 2026. In connection with amending the Credit Agreement in May 2025, the Company paid fees of $1.6 million, which were deferred and are being amortized on the same basis as the previously unamortized debt issuance costs.

As of July 3, 2026, no borrowings were outstanding on the Company's Revolving Credit Facility, and $5.8 million of letters of credit were outstanding, leaving $294.2 million available for borrowing under the Revolving Credit Facility.

As of July 3, 2026, the Company was in compliance with all covenants under the Credit Agreement.

Interest

The Term Loan B-1 interest rate is the Secured Overnight Financing Rate (“SOFR”) plus a margin that is between 2.0% and 2.25%, depending on the Company's consolidated total net leverage ratio, as defined in the Credit Agreement. The applicable margin on Term Loan B-1 was 2.25% during the three months ended July 3, 2026 and June 27, 2025, and will adjust to SOFR plus 200 basis points once the Company reaches a 3.30x consolidated total net leverage ratio as defined in the Credit Agreement.

The Term Loan A-2 interest rate is SOFR plus a Credit Spread Adjustment of 10 basis points and a margin that is between 1.5% and 2.50%, depending on the Company's consolidated total net leverage ratio, as defined in the Credit Agreement. The applicable margin on Term Loan A-2 was 2.50% and 2.33% during the three months ended July 3, 2026, and June 27, 2025, respectively.
The weighted-average interest rate for our senior secured term loan facilities was 6.23% and 6.80% for the nine months ended July 3, 2026 and June 27, 2025, respectively. The carrying amounts of the Company’s senior secured term loan facilities approximate their fair value as the interest rates are variable and reflective of market rates.