v3.26.1
Debt
 6 Months Ended
Jul. 04, 2026
Debt Disclosure [Abstract]  
Debt
(8)
Debt

Debt is comprised of the following (in thousands):

 

 

 

Interest Rates
at July 4, 2026

 

July 4,
2026

 

 

December 31,
2025

 

Outstanding Debt:

 

 

 

 

 

 

 

 

Revolving Credit Facility (1)

 

5.27%

 

$

261,193

 

 

$

217,380

 

CTL Financing (2)

 

6.84%

 

 

185,312

 

 

 

193,324

 

Equipment Financing (3)

 

2.68% to 7.22%

 

 

249,014

 

 

 

286,317

 

Real Estate Facility (4)

 

NA

 

 

—

 

 

 

105,260

 

Unamortized debt issuance costs

 

 

 

 

(2,937

)

 

 

(4,710

)

 

 

 

 

 

692,582

 

 

 

797,571

 

Less current portion of long-term debt

 

 

 

 

98,479

 

 

 

114,850

 

Total long-term debt, net of current portion

 

 

 

$

594,103

 

 

$

682,721

 

(1) Our Revolving Credit Facility provides us with a revolving credit commitment of up to $500 million. We may borrow under the Revolving Credit Facility until maturity on September 30, 2027, and this indebtedness bears interest at index-adjusted SOFR, or a base rate, plus an applicable margin based on the Company’s leverage ratio. The Revolving Credit Facility is secured by a first-priority pledge of the capital stock of applicable subsidiaries, as well as first-priority perfected security interests in cash, deposits, accounts receivable, and selected other assets of the applicable borrowers. The Revolving Credit Facility includes customary affirmative and negative covenants and events of default, as well as financial covenants requiring minimum fixed charge coverage and leverage ratios, and customary mandatory prepayment provisions. At July 4, 2026, we were in compliance with all covenants under the facility, and $238.8 million was available for borrowing on the revolver.

(2) In October 2025, we completed a credit tenant lease (“CTL”) financing transaction by issuing a senior secured promissory note in the principal amount of $195.9 million. We used the net proceeds of the CTL financing to repay existing indebtedness. The note bears interest at a fixed rate of 6.84% per annum and matures on November 15, 2034. The note is secured primarily by our interests under a long-term composite sublease agreement. The CTL debt is generally non-recourse to the Company and its subsidiaries, except for customary limited-recourse obligations under indemnity and guaranty agreements relating to environmental matters, lease-term compliance, and certain representations, warranties, and covenants. At July 4, 2026, we were in compliance with all covenants under the note.

(8)
Debt – continued

(3) Our Equipment Financing consists of a series of promissory notes issued by wholly owned subsidiaries. The equipment notes are secured by liens on specific titled vehicles and operating equipment. The notes are generally payable in monthly installments over terms of approximately 60 months and bear interest at fixed rates ranging from 2.68% to 7.22%. One equipment note is payable over a 72-month term and bears interest at Term SOFR plus an applicable margin of 2.25%.

(4) In June 2026, we repaid in full our then outstanding obligations under the Real Estate Facility.