XML 24 R13.htm IDEA: XBRL DOCUMENT
v3.21.2

Long-Term Debt | 9 Months Ended
--- | ---
Jul. 03, 2021
Debt Disclosure [Abstract] |
Long-Term Debt | Note 7—Long-Term Debt Our debt obligations consisted of the following (in thousands, except interest rates):
|  | Effective Interest Rate (1) |  |  | July 3, 2021 |  |  | October 3, 2020 |  |  | June 27, 2020 |
Term Loan—due on March 9, 2028 |  |  | 3.25 | % | (2) | $ | 807,975 |  |  | $ | 811,178 |  |  | $ | 815,349 |
Senior Unsecured Notes |  |  |  |  |  |  | — |  |  |  | 390,000 |  |  |  | 390,000 |
ABL Credit Facility |  |  | 1.25 | % | (3) |  | — |  |  |  | — |  |  |  | — |
Total long-term debt |  |  |  |  |  |  | 807,975 |  |  |  | 1,201,178 |  |  |  | 1,205,349 |
Less: current portion of long-term debt |  |  |  |  |  |  | (8,100 | ) |  |  | (8,341 | ) |  |  | (8,341 | )
Less: unamortized discount |  |  |  |  |  |  | (3,402 | ) |  |  | (9,348 | ) |  |  | (9,955 | )
Less: deferred financing charges |  |  |  |  |  |  | (8,742 | ) |  |  | (3,939 | ) |  |  | (4,273 | )
Long-term debt, net |  |  |  |  |  | $ | 787,731 |  |  | $ | 1,179,550 |  |  | $ | 1,182,780 |
(1) | Effective interest rates as of July 3, 2021.
(2) | Carries interest at a specified margin over LIBOR of 2.75% with a minimum LIBOR of 0.50%.
(3) | Carries interest at a specific margin between 0.25% and 0.75% with respect to Base Rate loans and between 1.25% and 1.75% with respect to Eurodollar Rate loans.
Term Loan—In March 2021, we entered into an amended and restated term loan credit agreement (the “Term Loan”). The Term Loan provides for an $810.0 million secured term loan facility, decreased pricing by 75 basis points and extended the maturity date to March 9, 2028. The other material terms of the Term Loan prior to the amendment remained substantially unchanged. In addition, as a result of the Term Loan, during the nine months ended July 3, 2021, we recognized a $1.9 million loss on early debt extinguishment related to the prepayment of the underlying loan tranches prepaid in connection with the amended Term Loan. Borrowings under the Term Loan have an initial applicable rate, at our option of, (i) 2.75% for loans that are LIBOR loans and (ii) 1.75% of loans that are ABR loans. The applicable rate of the Term Loan is based on our first lien leverage ratio as follows: (a) if the first lien leverage ratio is greater than 2.75 to 1.00, the applicable rate will be 2.75% for LIBOR loans and 1.75% for ABR loans and (b) the first lien leverage ratio is less than or equal to 2.75 to 1.00, the applicable rate will be 2.50% for LIBOR loans and 1.50% for ABR loans. For LIBOR loans, the loans will bear interest at the adjusted LIBOR rate plus the applicable rate, where the adjusted LIBOR rate will not be less than 0.50%. Substantially all of our assets are pledged as collateral to secure our indebtedness. The Term Loan does not require us to comply with any financial covenants. The Term Loan contains customary events of default and no event of default had occurred under the Term Loan as of July 3, 2021 or October 3, 2020. ABL Credit Facility— On April 12, 2021, we entered into Amendment No. 5 to our $200.0 million ABL Credit Facility maturing on August 13, 2025 (the “Amendment”). The Amendment (i) decreased the applicable margin on the Base Rate loans to a range of 0.25% to 0.75% from 0.75% to 1.00%, (ii) decreased the applicable margin on the Eurodollar Rate loans to a range of 1.25% to 1.75% from 1.75% to 2.00%, (iii) changed the LIBOR floor to 0% from 0.75%, and (iv) decreased our commitment fee rate to 0.25% from 0.375%. The other terms of the ABL Credit Facility prior to the amendment thereof remain substantially unchanged. In addition, we are also obligated to pay a commission on all outstanding letters of credit as well as customary administrative, issuance, fronting, amendment, payment, and negotiation fees. As of July 3, 2021, and October 3, 2020, no amounts were outstanding on the ABL Credit Facility. The amount available was reduced by $9.2 million of existing standby letters of credit as of July 3, 2021. Substantially all of our assets are pledged as collateral to secure our indebtedness The ABL Credit Facility does not require us to comply with any financial covenants. The ABL Credit Facility contains customary events of default, including default upon the nonpayment of principal, interest, fees or other amounts, or the occurrence of a change of control. No event of default had occurred under the ABL Credit Facility as of July 3, 2021 and October 3, 2020. Senior Unsecured Notes—The Senior Unsecured Notes principal of $390.0 million was paid in full on November 3, 2020 resulting in a loss on debt extinguishment of $7.3 million for the nine months ended July 3, 2021. The Senior Unsecured Notes were guaranteed on a senior basis by us and all our present and future domestic wholly owned subsidiaries. Interest-only payments on the Senior Unsecured Notes were payable quarterly on January 10, April 10, July 10, and October 10 of each year. We incurred interest of 8.50% plus LIBOR, subject to a minimum rate of 1.00%, on the Senior Unsecured Notes. The Senior Unsecured Notes had restrictive covenants that limited the ability to, among other things, incur or guarantee additional indebtedness or issue preferred stock; pay dividends and make other restricted payments; incur restrictions on the payment of dividends or other distributions; create or incur certain liens; make certain investments; transfer or sell assets; engage in transactions with affiliates; and merge or consolidate with other companies or transfer all or substantially all of our assets. Interest Rate Cap Agreements In March 2017, we entered into interest rate cap agreements in order to manage the variability of cash flows related to a portion of our floating rate indebtedness. Pursuant to the agreements, we capped LIBOR at 3.00% with respect to the aggregate notional amount of $750.0 million. In March 2021, our interest rate cap agreements expired. The fair value of our interest rate cap agreements were zero as of October 3, 2020. We did not recognize any gain or loss on our interest rate cap agreements during the three and nine months ended July 3, 2021 and June 27, 2020, respectively. Future Debt Maturities The following table summarizes the debt maturities and scheduled principal repayments of our indebtedness as of July 3, 2021 (in thousands):
|  | Amount |
Remainder of Fiscal 2021 |  | $ | 2,025 |
2022 |  |  | 8,100 |
2023 |  |  | 8,100 |
2024 |  |  | 6,075 |
2025 |  |  | 10,125 |
Thereafter |  |  | 773,550 |
Total |  | $ | 807,975 |

X
- References No definition available. + Details
Name: | us-gaap_DebtDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for long-term debt. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
Name: | us-gaap_LongTermDebtTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration