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Credit Agreement
 9 Months Ended
Sep. 27, 2025
Debt Disclosure [Abstract]  
Credit Agreement Credit Agreement
As of September 27, 2025, the Company’s credit facility had a total commitment amount of $670 million. The credit facility,
as amended, is for general corporate purposes and to meet seasonal working capital requirements. The Amended and
Restated Credit and Security Agreement, dated February 14, 2018, among the Company, U.S. Bank National Association
and the several banks and other financial institutions from time to time party thereto (as amended, the Credit Agreement).
The Credit Agreement provides the lenders with a collateral security interest in substantially all of the Company’s assets
and those of its subsidiaries and requires the Company to comply with, among other things, a maximum Net Leverage
Ratio and a minimum Interest Coverage Ratio (as defined in the Credit Agreement).
The carrying amount of the outstanding borrowings under the Credit Agreement approximates fair value because interest
rates approximate the current rates available to the Company. Under the terms of the Credit Agreement, the Company
pays a variable rate of interest and a commitment fee based on the amended terms below.
On November 4, 2025, the Company amended the Credit Agreement. The amendment, among other things: (a) extends
the maturity date of the Credit Agreement to December 3, 2027; (b) reduces the revolving credit facility from $485 million
to $475 million, which decreases further to $465 million on July 31, 2026; (c) replaces the leverage-based pricing grids
used to determine the Applicable Margin and Applicable Commitment Fee Rate (each as defined in the Credit Agreement)
in favor of (I) with respect to Applicable Margin for Term SOFR Loans, (x) 4.0% until December 31, 2026 and (y) 4.25%
starting January 1, 2027 and continuing thereafter, and (II) with respect to the Applicable Commitment Fee Rate, (x)
0.50% until December 31, 2026 and (y) 0.75% starting January 1, 2027 and continuing thereafter; (d) on each Regularly
Scheduled Payment Date (as defined in the Credit Agreement) occurring on and after March 31, 2027, increases the
amortization of outstanding term loans an additional $1,250,000 (for an aggregate scheduled principal payment of
$3,750,000); (e) terminates the accordion feature; (f) adjusts the permissible maximum Net Leverage Ratio (as defined in
the Credit Agreement) to (I) 5.25 to 1.00 for the quarterly reporting period ended September 27, 2025, (II) 4.50 to 1.00 for
the quarterly reporting period ending January 3, 2026, (III) 4.75 to 1.00 for the quarterly reporting period ending April 4,
2026, (IV) 4.80 to 1.00 for the quarterly reporting period ending July 4, 2026, and (V) 4.00 to 1.00 for each quarterly
reporting period thereafter; (g) adjusts the Liquidity financial covenant so that the Company must ensure that liquidity is no
lower than $30 million until September 30, 2026, and $40 million for each monthly reporting period thereafter; (h) adjusts
the permissible minimum Interest Coverage Ratio to (I) 1.50 to 1.00 for the quarterly reporting period ended September
27, 2025, (II) 2.10 to 1.00 for the quarterly reporting periods ending January 3, 2026 and April 4, 2026, (III) 1.80 to 1.00 for
the quarterly reporting period ending July 4, 2026, (IV) 2.10 to 1.00 for the reporting period ending October 3, 2026, and
(V) 2.20 to 1.00 for each quarterly reporting period occurring thereafter; (i) adds a new quarterly minimum EBITDA
covenant test that begins for the quarterly reporting period ending April 4, 2026; (j) adjusts the consolidated EBITDA
calculation to include an addback for certain expenses and costs incurred for the trailing twelve months for discontinued
operations, downsized functions and employment expenses for laid-off employees; and (k) provides for additional and
more frequent reporting requirements. Following such amendment, the Company was in compliance with all covenants.
In connection with the amendment, the Company also agreed to pay the lenders certain amendment fees and to
reimburse the lenders for certain expenses.
The following table summarizes the Company’s borrowings under the credit facility ($ in thousands):
September 27,
2025
December 28,
2024
Outstanding borrowings
$579,500
$546,600
Outstanding letters of credit
$8,847
$7,147
Additional borrowing capacity
$81,653
$123,753
Weighted-average interest rate
7.9%
7.6%