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Debt (Tables)
 6 Months Ended
Apr. 01, 2023
Debt Disclosure [Abstract]  
Schedule of Debt Covenant Requirements
The minimum consolidated EBITDA that the Company is required to maintain during the Amended Limited Availability Period is updated as set forth in the table below (in millions):

PeriodMinimum Consolidated EBITDA
Fiscal quarter ending July 1, 2023$50.0
Fiscal quarter ending September 30, 2023$60.0
The minimum liquidity (in the form of undrawn availability under the revolving credit facility and unrestricted cash and cash equivalents) that the Company is required to maintain at the end of each fiscal month during the Amended Limited Availability Period is amended as set forth in the table below (in millions):

PeriodMinimum Liquidity
Sixth amendment effective date through December 30, 2023$30.0

Additionally, the financial performance covenant requiring that school bus units manufactured by the Company (“Units”) not fall below certain pre-set thresholds on a three month trailing basis (“Units Covenant”) is amended for Units to be calculated at the end of each applicable fiscal month on a cumulative basis, with the minimum cumulative threshold that the Company is required to maintain during the Amended Limited Availability Period amended as set forth in the table below. The Units Covenant is triggered only if the Company’s liquidity for the most-recently ended fiscal month is less than $50.0 million during the Amended Limited Availability Period:

PeriodMinimum Units Manufactured
Period from October 2, 2022 and ending October 29, 2022450
Period from October 2, 2022 and ending November 26, 2022900
Period from October 2, 2022 and ending December 31, 20221,400
Period from October 2, 2022 and ending January 28, 20231,900
Period from October 2, 2022 and ending February 25, 20232,400
Period from October 2, 2022 and ending April 1, 20233,000
The pricing grid in the Amended Credit Agreement, which is based on the TNLR, is applicable to both term loan and revolving borrowings and is determined in accordance with the amended pricing matrix set forth below:

LevelTotal Net Leverage RatioABR LoansSOFR Loans
ILess than 2.00x0.75%1.75%
IIGreater than or equal to 2.00x and less than 2.50x1.00%2.00%
IIIGreater than or equal to 2.50x and less than 3.00x1.25%2.25%
IVGreater than or equal to 3.00x and less than 3.25x1.50%2.50%
VGreater than or equal to 3.25x and less than 3.50x1.75%2.75%
VIGreater than or equal to 3.50x and less than 4.00x2.00%3.00%
VIIGreater than or equal to 4.00x and less than 4.50x2.75%3.75%
VIIIGreater than or equal to 4.50x and less than 5.00x3.75%4.75%
IXGreater than 5.00x4.75%5.75%
Schedule of Term Debt Instruments
Term debt consisted of the following at the dates indicated:

(in thousands of dollars)April 1, 2023October 1, 2022
2023 term loan, net of deferred financing costs of $2,148 and $1,410, respectively
$139,552 $150,190 
Less: current portion of long-term debt19,800 19,800 
Long-term debt, net of current portion$119,752 $130,390 
Schedule of Maturities of Long-term Debt
The schedule of remaining principal payments through maturity for the term loans is as follows:
(in thousands of dollars)
Fiscal YearPrincipal Payments
2023$9,900 
202419,800 
2025112,000 
Total remaining principal payments$141,700