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Debt
 3 Months Ended
Jul. 29, 2023
Debt Disclosure [Abstract]  
Debt

Note 8. Debt

A summary of debt is shown below:

 

(in millions)

 

July 29, 2023

 

 

April 29, 2023

 

Revolving credit facility

 

$

337.5

 

 

$

305.4

 

Other debt

 

 

4.6

 

 

 

4.7

 

Unamortized debt issuance costs

 

 

(3.1

)

 

 

(3.3

)

Total debt

 

 

339.0

 

 

 

306.8

 

Less: current maturities

 

 

(3.2

)

 

 

(3.2

)

Total long-term debt

 

$

335.8

 

 

$

303.6

 

Revolving credit facility/term loan

On October 31, 2022, the Company entered into a Second Amended and Restated Credit Agreement (the “Credit Agreement”) among the Company, Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer, and the Lenders and other parties named therein. The Credit Agreement amends and restates the Amended and Restated Credit Agreement, dated September 12, 2018 and as previously amended (the “Prior Credit Agreement”), among the Company, Bank of America, N.A., as Administrative Agent, Swing Line Lender, and L/C Issuer, Wells Fargo Bank, National Association, as L/C Issuer, and the Lenders named therein. Among other things, the Credit Agreement (i) increased the multicurrency revolving credit commitments under the Prior Credit Agreement to $750,000,000, (ii) refinanced in full and terminated the term loan facility under the Prior Credit Agreement, and (iii) made certain other changes to the covenants, terms, and conditions under the Prior Credit Agreement. In addition, the Credit Agreement permits the Company to increase the revolving commitments and/or add one or more tranches of term loans under the Credit Agreement from time to time by up to an amount equal to (i) $250,000,000 plus (ii) an additional amount so long as the leverage ratio would not exceed 3.00:1.00 on a pro forma basis, subject to, among other things, the receipt of additional commitments from existing and/or new lenders. The Credit Agreement matures on October 31, 2027.

Loans denominated in US dollars under the Credit Agreement bear interest at either (a) an adjusted base rate or (b) an adjusted term Secured Overnight Financing Rate (“SOFR”) rate or term SOFR daily floating rate (in each case, as determined in accordance with the provisions of the Credit Agreement) in each case plus an applicable rate (the “Applicable Rate”) ranging between 0.375% and 1.25%, in the case of adjusted base rate loans, and between 1.375% and 2.25%, in the case of adjusted term SOFR rate loans and term SOFR daily floating rate loans. Loans denominated in euros will bear interest at the Euro Interbank Offered Rate plus an Applicable Rate ranging between 1.375% and 2.25%. The Applicable Rate is set based on the Company’s consolidated leverage ratio.

As of July 29, 2023, the outstanding balance under the revolving credit facility included $145.5 million (€132.0 million) of euro-denominated borrowings which was primarily used to fund the Company's acquisition of Nordic Lights. The Company has designated the euro-denominated borrowings as a net investment hedge of the foreign currency exposure of its investments in euro-denominated subsidiaries. Refer to Note 7, "Derivative Financial Instruments and Hedging Activities" for further information. On August 31, 2023, the Company borrowed €143.0 million ($156.0 million) under the revolving credit facility and used the proceeds to primarily repay US dollar borrowings under the revolving credit facility.

The weighted-average interest rate on outstanding US dollar and euro-denominated borrowings under the Credit Agreement was approximately 7.0% and 5.2%, respectively, as of July 29, 2023. The Credit Agreement contains customary representations and warranties, financial covenants, restrictive covenants and events of default. As of July 29, 2023, the Company was in compliance with all the covenants in the Credit Agreement.

Other debt

One of the Company’s European subsidiaries has debt that consists of three notes with maturities ranging from 2023 to 2031. The weighted-average interest rate on this debt was approximately 1.4% at July 29, 2023 and $3.2 million of the debt was classified as short-term.