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Subsequent Events | 12 Months Ended
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Oct. 02, 2021
Subsequent Events [Abstract] |
Subsequent Events | 19. Subsequent Events Fourth Amendment to the Credit Agreement On November 24, 2021, the Company executed a fourth amendment to the Credit Agreement, First Amended Credit Agreement, Second Amended Credit Agreement and Third Amended Credit Agreement (the "Fourth Amended Credit Agreement"). The Fourth Amended Credit Agreement, among other things, provides for certain temporary amendments to the Credit Agreement from the third amendment effective date through and including (a) April 1, 2023 (the “Amended Limited Availability Period”), or (b) the first date on which Borrower elects to terminate the Amended Limited Availability Period, in each case, subject to (x) the absence of a default or event of default and (y) pro forma compliance with the financial covenant performance covenants under the Fourth Amended Credit Agreement. With respect to the financial performance covenants, during the Amended Limited Availability Period for the fiscal quarters ending January 1, 2022 through October 1, 2022, the TNLR requirement is not applicable, although it continues to impact the interest rate that is charged on outstanding borrowings as discussed below. Instead, the minimum consolidated EBITDA that the Company is required to maintain during the Amended Limited Availability Period has been updated to include fiscal 2022 as set forth in the table below (in millions):
| Period |  | Minimum Consolidated EBITDA |
| Fiscal quarter ending January 1, 2022 |  | $14.5 |
| Fiscal quarter ending April 2, 2022 |  | $(4.5) |
| Fiscal quarter ending July 2, 2022 |  | $(6.8) |
| Fiscal quarter ending October 1, 2022 |  | $20.0 |
However, in the event that Borrower elects to terminate the Amended Limited Availability Period in fiscal 2022, the maximum TNLR permitted is 3.50x. The minimum liquidity (in the form of undrawn availability under the Revolving Credit Facility and unrestricted cash and cash equivalents) that the Company must maintain during the Amended Limited Availability Period has been amended as set forth in the table below (in millions):
Period |  | Minimum Liquidity
Fourth amendment effective date through January 1, 2022 |  | $10.0
January 2, 2022 through April 2, 2022 |  | $5.0
April 3, 2022 through July 2, 2022 |  | $15.0
Thereafter |  | $20.0
Additionally, a new financial performance covenant was added in the Fourth Amended Credit Agreement, requiring that school bus units manufactured by the Company (“Units”) not fall below the pre-set thresholds set forth in the table below on a three month trailing basis (“Units Covenant”). The Units Covenant is triggered only if the Company’s liquidity for the most-recently ended fiscal month is less than $50 million during the Amended Limited Availability Period:
Period |  | Minimum Units Manufactured
Three month period ending November 27, 2021 |  | 1,128
Three month period ending January 1, 2022 |  | 776
Three month period ending January 29, 2022 |  | 748
Three month period ending February 26, 2022 |  | 727
Three month period ending April 2, 2022 |  | 763
Three month period ending April 30, 2022 |  | 1,111
Three month period ending May 28, 2022 |  | 1,525
Three month period ending July 2, 2022 |  | 2,053
Three month period ending July30, 2022 |  | 2,072
Three month period ending August 27, 2022 |  | 2,199
Three month period ending October 1, 2021 |  | 2,306
If the Units during any three fiscal month period set forth above is less than the minimum required by the Units Covenant, Borrower may elect to carry forward up to 50% of certain applicable excess Units to satisfy the Units Covenant requirement. However, Borrower may not make such election in two consecutive three fiscal month periods. The pricing grid in the Fourth Amended Credit Agreement, which is based on the TNLR, is determined in accordance with the amended pricing matrix set forth below:
Level |  | Total Net Leverage Ratio |  | ABR Loans |  | Eurodollar Loans
I |  | Less than 2.00x |  | 0.75% |  | 1.75%
II |  | Greater than or equal to 2.00x and less than 2.50x |  | 1.00% |  | 2.00%
III |  | Greater than or equal to 2.50x and less than 3.00x |  | 1.25% |  | 2.25%
IV |  | Greater than or equal to 3.00x and less than 3.25x |  | 1.50% |  | 2.50%
V |  | Greater than or equal to 3.25x and less than 3.50x |  | 1.75% |  | 2.75%
VI |  | Greater than or equal to 3.50x and less than 4.50x |  | 2.00% |  | 3.00%
VII |  | Greater than or equal to 4.50x and less than 5.00x |  | 3.25% |  | 4.25%
VIII |  | Greater than 5.00x |  | 4.25% |  | 5.25%
During the Amended Limited Availability Period (notwithstanding the pricing grid set forth above), the applicable rate shall be (a) solely to the extent that the aggregate revolving exposures exceed $100.0 million, 5.75% with respect to such excess and (b) with respect to all other revolving exposures, the sum of the rate determined by the administrative agent in accordance with the pricing grid set forth above, plus 0.50%. Additional allowances have been made in the Fourth Amended Credit Agreement for the Company to issue or incur up to $100.0 million of qualified equity interests issued by the Company, unsecured subordinated indebtedness or unsecured convertible indebtedness (collectively, “Junior Capital”). Upon the issuance or incurrence of any Junior Capital, the Company is required to prepay the outstanding revolving loans (with no permanent reduction in the revolving commitments) in an amount equal to the lesser of (a) 100% of the net proceeds from such Junior Capital and (b) the aggregate of revolving exposures then outstanding. Prior to the initial issuance or incurrence of any Junior Capital, any issuance, amendment, renewal, or extension of credit during the Amended Limited Availability Period may not cause the aggregate outstanding Revolving Credit Facility principal to exceed $110.0 million (“Availability Cap”). Following any issuance or incurrence of Junior Capital, the Availability Cap is permanently reduced to $100.0 million. For the duration of the Amended Limited Availability Period, the Fourth Amended Credit Agreement sets forth additional monthly reporting requirements in connection with the manufactured school bus units required by the financial performance covenants, when applicable. Sale of Common Stock On December 15, 2021, the Company issued and sold through a private placement an aggregate 4,687,500 shares of its common stock at $16.00 per share (“Private Placement”) to Coliseum Capital Partners and Blackwell Partners LLC (collectively, “Coliseum”). Subsequent to the sale, Coliseum will own an approximate 15% equity interest in the Company. In connection with the purchase of the shares, Coliseum receives customary registration rights and the Company will add Adam Gray of Coliseum as a Class II director. The Company intends to use the net proceeds ($75.0 million) from the Private Placement for working capital and other general corporate purposes, which may include acquisitions, investments in technologies or businesses, operating expenses and capital expenditures.

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- Definition The entire disclosure for significant events or transactions that occurred after the balance sheet date through the date the financial statements were issued or the date the financial statements were available to be issued. Examples include: the sale of a capital stock issue, purchase of a business, settlement of litigation, catastrophic loss, significant foreign exchange rate changes, loans to insiders or affiliates, and transactions not in the ordinary course of business. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 855 -URI http://asc.fasb.org/topic&trid=2122774 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 855 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6842918&loc=SL6314017-165662 + Details
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