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Long-term Debt | 6 Months Ended
--- | ---
Dec. 29, 2024
Debt Disclosure [Abstract] |
Long-term Debt | Long-term Debt
|  | December 29, 2024 |  | June 30, 2024
(in millions of U.S. Dollars) | Effective Interest Rate | Principal |  | Unamortized Discount |  | Net |  | Principal |  | Unamortized Discount |  | Net
1.75% Convertible Notes(1) | 2.2 | % | $575.0 |  |  | ($3.2) |  |  | $571.8 |  |  | $575.0 |  |  | ($4.3) |  |  | $570.7 |
0.25% Convertible Notes(1) | 0.6 | % | 750.0 |  |  | (9.4) |  |  | 740.6 |  |  | 750.0 |  |  | (10.9) |  |  | 739.1 |
1.875% Convertible Notes(1) | 2.1 | % | 1,750.0 |  |  | (22.8) |  |  | 1,727.2 |  |  | 1,750.0 |  |  | (24.9) |  |  | 1,725.1 |
2030 Senior Notes(2) | 16.3 | % | 1,505.9 |  |  | (80.0) |  |  | 1,425.9 |  |  | 1,250.0 |  |  | (80.3) |  |  | 1,169.7 |
CRD Agreement Deposits(2) | 6.8 | % | 2,000.0 |  |  | (41.7) |  |  | 1,958.3 |  |  | 2,000.0 |  |  | (43.5) |  |  | 1,956.5 |
|  | $6,580.9 |  |  | ($157.1) |  |  | $6,423.8 |  |  | $6,325.0 |  |  | ($163.9) |  |  | $6,161.1 |
(1) Presented in convertible notes (2) Presented in long-term debt As of December 29, 2024, the Company was in compliance with all covenants relating to the senior secured notes due 2030 (the 2030 Senior Notes) and the Unsecured Customer Refundable Deposit Agreement entered into in July 2023 with a customer (the CRD Agreement). 2030 Senior Notes Amended and Restated Indenture On October 11, 2024, the Company entered into the Amended and Restated Indenture (the 2030 Senior Notes Indenture), which amends certain terms and conditions of the 2030 Senior Notes and permits the Company to issue and sell $750.0 million of additional notes, subject to the fulfillment of certain conditions precedent. Pursuant to the 2030 Senior Notes Indenture, the 2030 Senior Notes bear interest (a) for the period from the effectiveness of the original Indenture related to the 2030 Senior Notes entered into on June 23, 2023 to October 11, 2024 at a rate of 9.875% per annum; (b) for the period from October 11, 2024 through and including June 22, 2025 at a rate of 9.875% per annum (payable in cash), plus 2% per annum (payable at the Company's option, in cash or in-kind); (c) for the period commencing on June 23, 2025 through June 22, 2026 (i) if the Interest Rate Step-Down Condition (as defined below) is satisfied as of June 23, 2025, at a rate of 10.875% per annum (payable in cash) plus 2% per annum (payable at the Company's option in cash or in-kind) and (ii) if the Interest Rate Step-Down Condition is not satisfied as of June 23, 2025 at a rate of 11.875% per annum (payable in cash), plus 2% per annum (payable at the Company's option, in cash or in-kind); and (d) for the period commencing on June 23, 2026 and at all times thereafter, (i) if the Interest Rate Step-Down Condition is satisfied as of June 23 of the most recent year, at a rate of 13.875% per annum (payable in cash) and (ii) if the Interest Rate Step-Down Condition is not satisfied, at a rate of 15.875% per annum (payable in cash). The Interest Rate Step-Down Condition is met if (a)(i) the Company redeems or repurchases (other than redemptions or repurchases with the proceeds of dispositions) the 2030 Senior Notes, resulting in the aggregate principal amount of 2030 Senior Notes outstanding being less than $1.0 billion and (ii) the Company receives at least $450.0 million of awards under the CHIPS Act or (b) as of the most recent June 23rd, the ratio of outstanding principal amount of the 2030 Senior Notes to EBITDA (as defined in the 2030 Senior Notes Indenture) for the most recently ended four fiscal quarter period for which financial statements have been or are required to have been delivered under the 2030 Senior Notes Indenture is less than or equal to 2:1. The 2030 Senior Notes will mature on the earlier of (x) June 23, 2030 and (y) September 1, 2029, if more than $175 million in aggregate principal amount of the Company's 1.875% convertible senior notes due December 1, 2029 remains outstanding on such date. The 2030 Senior Notes Indenture contains certain customary affirmative covenants, negative covenants and events of default, including a liquidity maintenance financial covenant requiring the Company to have an aggregate amount of unrestricted cash and cash equivalents maintained in accounts over which the trustee and collateral agent has been granted a perfected first lien security interest of at least (a) $630.0 million as of the last day of any calendar month ending on or prior to March 31, 2025 and (b) $750.0 million as of April 1, 2025 and as of the last day of any calendar month ending thereafter. Upon the Company having received at least $450.0 million of award disbursements pursuant to governmental grants under the CHIPS Act, the level of minimum liquidity shall be permanently reduced to $500.0 million. Upon the Company having received at least $750.0 million of award disbursements pursuant to governmental grants under the CHIPS Act, the level of minimum liquidity shall be permanently reduced to $250.0 million. On October 22, 2024, the Company issued $250.0 million in aggregate principal amount of 2030 Senior Notes pursuant to the 2030 Senior Notes Indenture. The Company may issue up to an additional $500.0 million in aggregate principal amount of 2030 Senior Notes, subject to certain conditions. 2033 CRD Agreement Amendment On October 15, 2024, the Company entered into Amendment No. 1 to the CRD Agreement, which amends the existing agreement to, among other things, permit the Company to pay the accrued interest on the outstanding loans payable under the existing agreement on the last business day of each of December 2024 and June 2025 (together, the PIK Amounts) by adding the PIK Amounts to the then outstanding principal amount of the loans rather than in cash. The interest rate on the PIK Amounts will accrue at a rate of 15.0% per annum. The amendment also permits the Company to grant liens on additional assets in Siler City, North Carolina in connection with disbursements pursuant to governmental grants or awards under the CHIPS Act, and permits the Company to pay a portion of interest on the 2030 Senior Notes in-kind subject to the limitations set forth in the amendment to the CRD Agreement. Interest Expense The interest expense, net recognized related to the corporate debt holdings and the deposits under the CRD Agreement is as follows:
| Three months ended |  | Six months ended
(in millions of U.S. Dollars) | December 29, 2024 |  | December 31, 2023 |  | December 29, 2024 |  | December 31, 2023
Interest expense, net of capitalized interest | $66.6 |  |  | $56.0 |  |  | $123.4 |  |  | $109.7 |
Amortization of discount and debt issuance costs, net of capitalized interest | 13.3 |  |  | 7.4 |  |  | 20.0 |  |  | 14.6 |
Total interest expense, net | $79.9 |  |  | $63.4 |  |  | $143.4 |  |  | $124.3 |
The Company capitalizes interest in connection with ongoing capacity expansions.
| Three months ended |  | Six months ended
(in millions of U.S. Dollars) | December 29, 2024 |  | December 31, 2023 |  | December 29, 2024 |  | December 31, 2023
Interest expense capitalized | $17.4 |  |  | $5.2 |  |  | $33.3 |  |  | $7.5 |
Amortization of discount and debt issuance costs capitalized | 3.5 |  |  | 0.7 |  |  | 5.5 |  |  | 1.0 |
Total interest expense capitalized | $20.9 |  |  | $5.9 |  |  | $38.8 |  |  | $8.5 |

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