XML 43 R22.htm IDEA: XBRL DOCUMENT v3.25.3
Debt
 9 Months Ended
Sep. 27, 2025
Debt Disclosure [Abstract]  
Debt
15. Debt
(in millions)September 27,
2025		December 28,
2024
Term loan - current portion$— $15.0 
Debt, current portion— 15.0 
Term loan - long-term— 258.3 
Revolver - long-term559.1 456.0 
Debt, long-term559.1 714.3 
Total debt$559.1 $729.3 
Credit Facility
On April 11, 2022, the Company entered into a credit agreement (Credit Facility) with financial institutions party thereto as initial lenders (collectively, the Initial Lenders), Citibank, N.A., as Administrative Agent, Citibank, N.A., JPMorgan Chase Bank, N.A., Bank of the West and BofA Securities, Inc., as joint lead arrangers and joint bookrunners, and JPMorgan Chase Bank, N.A., Bank of the West and BofA Securities, Inc., as co-syndication agents.
The Credit Facility provides for an unsecured term loan of $300.0 million (Term Loan) and $500.0 million of on-going unsecured revolving commitments (Revolver), with an option, subject to certain conditions, for the Company to increase the aggregate borrowing capacity by an additional $400.0 million (plus additional unlimited amounts if certain incurrence tests are met) in the future with the Initial Lenders and additional lenders, as required. Debt issuance costs of $8.4 million were recorded as a reduction to the carrying amount of the Credit Facility and are being amortized to interest expense using the effective interest method.
The Credit Facility also provides for a sublimit of up to $50.0 million for the issuance of letters of credit.
Borrowings under the Credit Facility will be deemed, at the Company’s election, either: (a) an Alternate Base Rate (ABR) Loan, which bears interest at the ABR, plus a spread of 0.000% to 0.750% based upon a Company leverage ratio, or (b) a Term SOFR Loan, which bears interest at the Adjusted Term SOFR Rate (as defined below), plus a spread of 1.000% to 1.750% based upon a Company net leverage ratio. Pursuant to the terms of the Credit Facility, the ABR is equal to the greatest of (i) the prime rate, (ii) the Federal Reserve Bank of New York effective rate plus 0.50%, and (iii) the one-month Adjusted Term SOFR plus 1.0%. The Adjusted Term SOFR Rate is equal to the Term SOFR Rate (as defined in the Credit Facility) for the applicable interest period plus a spread adjustment of 0.10%, 0.15% and 0.25% for the interest periods ending one, three and six months, respectively. At September 27, 2025, the effective interest rate on the Credit Facility was 6.34%.
The Company is also obligated under the Credit Facility to pay an unused fee ranging from 0.150% to 0.275% per annum, based upon a Company leverage ratio, with respect to any non-utilized portion of the Credit Facility.
The Company is subject to certain covenants, including financial covenants related to a net leverage ratio and an interest coverage ratio, and other customary negative covenants. The Credit Facility also includes customary events of default which, upon the occurrence of any such event of default, provide the Initial Lenders (and any additional lenders) with the right to take either or both of the following actions: (a) immediately terminate the commitments, and (b) declare the loans then outstanding immediately due and payable in full. All unpaid principal under the Credit Facility will become due and payable on April 12, 2027.
On May 16, 2022, the Company entered into the First Amendment to the Credit Agreement (First Amendment) with the Initial Lenders and Citibank, N.A., as the administrative agent, which amended the Credit Facility. The First Amendment provides for an additional $205 million of unsecured revolving commitments, increasing the aggregate amount of the Revolver from $500 million to $705 million.
Borrowing rates, maturity date, financial covenants, affirmative and negative covenants and other restricted terms remain unchanged from the Credit Facility. All unpaid principal under the First Amendment will become due and payable on April 12, 2027.
On September 23, 2025, the Company repaid the outstanding balance on the Term Loan of $271.1 million, and recorded a charge of $0.9 million for the outstanding unamortized balance from the debt issuance costs associated with the Term Loan.
As of September 27, 2025, the Company had approximately $140.9 million of available borrowing capacity, (net of approximately $3.1 million of outstanding letters of credit) under the Credit Facility.
The Company was in full compliance with all covenants contained in its debt agreements and Credit Facility at September 27, 2025.
For the three months ended September 27, 2025 and September 28, 2024, the Company incurred total interest expense of $8.8 million and $9.9 million under the Credit Facility, respectively. For the nine months ended September 27, 2025 and September 28, 2024, the Company incurred total interest expense of $25.7 million and $31.8 million under the Credit Facility, respectively.
As of September 27, 2025, the aggregate maturities of principal on the Credit Facility for each of the next five years and thereafter are as follows:
Fiscal yearAmount
(in millions)
2025 (balance of year)$— 
2026— 
2027559.1 
2028— 
2029— 
Thereafter— 
Total$559.1