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Subsequent Events:
3 Months Ended
Mar. 28, 2015
Subsequent Events:  
Subsequent Events:

 

12.Subsequent Events:

 

On April 14, 2015, the Line of Credit was amended to, among other things:

 

Provide the consent of the lenders for a self-tender offer by the Company to purchase up to 875,000 shares of its outstanding common stock for a price of $84.72 per share that was announced on April 15, 2015 (the “Tender Offer”);

 

Increase the aggregate commitments from $35.0 million to $60.0 million to partially fund the Tender Offer;

 

Extend the termination date from February 28, 2018 to a date that is four years from the effective date of the amendment;

 

Amend the tangible net worth covenant calculation to remove the effect of the Tender Offer and amend the leverage ratio to allow for an increase in the maximum of such ratio for a period of approximately two years from the effective date of the amendment;

 

Provide for a change in the applicable margin on the interest rate options based upon the leverage ratio;

 

Provide for additional LIBOR interest periods of six months and twelve months and remove the fixed rate interest options; and

 

Permit the Company to sell up to $30 million in term notes to one or more affiliates or managed accounts of Prudential Investment Management, Inc. (“Prudential”) to partially fund the Tender Offer.

 

The effectiveness of the amendment is subject to the satisfaction or waiver of a number of conditions, including receipt of an intercreditor agreement with Prudential, in form and substance acceptable to the lenders.  If the conditions to the effectiveness of the amendment are not satisfied or waived by the lenders on or before May 29, 2015, the amendment will be void and of no force or effect.