Long-Term Debt |
9 Months Ended |
|---|---|
Sep. 29, 2026 | |
| Debt Disclosure [Abstract] | |
| Long-Term Debt | Long-Term Debt On July 27, 2022, the Company amended and restated its Credit Agreement by entering into the Amended and Restated Credit Agreement (as further amended, restated, extended, supplemented, modified and otherwise in effect from time to time, the “A&R Credit Agreement”), with each other Loan Party (as defined in the A&R Credit Agreement) party thereto, each lender from time to time party thereto, and U.S. Bank National Association, as Administrative Agent, L/C Issuer and Swing Line Lender (each as defined in the A&R Credit Agreement). The A&R Credit Agreement is secured by a pledge of stock of substantially all of the Company’s subsidiaries and a lien on substantially all of the personal property assets of the Company and its subsidiaries. Among other things, the A&R Credit Agreement: set the cost of borrowing at the Secured Overnight Financing Rate (“SOFR”) plus a margin of 1.50% to 2.50% per annum, based upon the consolidated total lease-adjusted leverage ratio. The A&R Credit Agreement was subsequently amended on December 21, 2023 and on October 29, 2024, the Company entered into that certain Second Amendment to the Amended and Restated Credit Agreement (the “Second Amendment”). Among the modifications, the Second Amendment: (i) increased the maximum applicable rate ranges, (ii) conditioned the use of the general restricted payment basket on satisfaction of a Consolidated Total Lease Adjusted Leverage Ratio (as defined in the A&R Credit Agreement) of less than or equal to 4.00 to 1.00 and a Consolidated Fixed Charge Coverage Ratio (as defined in the A&R Credit Agreement) of greater than or equal to 1.25 to 1.00, (iii) restricted entry into new lease agreements so long as the Consolidated Total Lease Adjusted Leverage Ratio (as defined in the A&R Credit Agreement) in Section 7.11(a) of the A&R Credit Agreement is greater than or equal to 4.50 to 1.00, (iv) increased the Consolidated Total Lease Adjusted Leverage Ratio (as defined in the A&R Credit Agreement) in Section 7.11(a) of the A&R Credit Agreement to be no greater than (1) 4.75 to 1.00 for the fiscal quarters ending September 29, 2026 and December 29, 2026 and (2) 4.50 to 1.00 for the fiscal quarter ended March 30, 2027 and thereafter and (v) amended the Consolidated Fixed Charge Coverage Ratio (as defined in the A&R Credit Agreement) in Section 7.11(b) of the A&R Credit Agreement to be no less than (1) 1.25 to 1.00 for the fiscal quarter ending June 30, 2026 and thereafter. On November 12, 2026, the Company and the Loan Parties entered into an amendment to the A&R Credit Agreement (the “Third Amendment”) to (i) extend the maturity date from July 27, 2027 to November 30, 2027, (ii) reduce the aggregate amount of the facility to $120.0 million, (iii) provide that all outstanding letters of credit issued under the A&R Credit Agreement will not be renewed upon expiration and that, upon the earlier repayment of the revolving credit facility or January 29, 2027, the Company will deliver cash collateral to the Administrative Agent in an amount equal to 105% of the stated amount of the outstanding letters of credit until their expiration, and (iv) establish the cost of borrowing through January 29, 2027 at SOFR plus 3.25% with respect to SOFR Loans and the Base Rate plus 2.25% with respect to base rate loans as defined in the A&R Credit Agreement) and, on and after January 30, 2027, at SOFR plus 7.00% for all loans (with SOFR subject to a floor of 3.00%). In addition the Company paid an extension fee plus administrative fees and, if all obligations under the A&R Credit Agreement have not been paid in full by January 29, 2027, the Company will pay the Loan Parties a fee of $1,250,000. As of September 29, 2026, the Company had $101.0 million of indebtedness (excluding $0.7 million of unamortized debt issuance costs) and $2.8 million of letters of credit outstanding under the A&R Credit Agreement. The Company maintains outstanding letters of credit to secure obligations under its workers’ compensation program and certain lease obligations. The Company was in compliance with all of its debt covenants as of September 29, 2026. The Company’s revolver, which had a balance of $101.0 million as of September 29, 2026, bore interest at rates between 6.68% and 9.50% during the first three quarters of 2026. The Company’s swingline, which did not have a balance as of September 29, 2026, bore interest between 8.75% and 9.5% in the first three quarters of 2026. As of September 29, 2026, the Company had cash on hand of $1.5 million. The Company will require new financing and/or other sources of capital or a waiver or agreement with its current lenders to extend or refinance the facility on or before maturity. The Company continues to review its options with respect to such debt obligation in connection with its review of strategic alternatives; however, there is no assurance that the Company will obtain such financing, other sources of capital, an extension or refinancing on a timely basis.
|