XML 30 R14.htm IDEA: XBRL DOCUMENT v3.22.0.1
Long-Term Debt
 12 Months Ended
Jan. 01, 2022
Debt Disclosure [Abstract]  
Long-Term Debt

Note 6 – Long-Term Debt

Long-term debt consists of the following:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

January 1,

 

 

January 2,

 

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2022

 

 

2021

 

Senior secured revolving credit facility, due December 2023

$

 

359,640

 

 

$

 

440,177

 

Finance lease obligations (Note 9)

 

 

43,142

 

 

 

 

43,632

 

Other, 4.35% - 4.36%, due 2023 - 2026

 

 

5,617

 

 

 

 

6,707

 

Total debt - Principal

 

 

408,399

 

 

 

 

490,516

 

Unamortized debt issuance costs

 

 

(2,675

)

 

 

 

(4,072

)

Total debt - Principal

 

 

405,724

 

 

 

 

486,444

 

Less current portion

 

 

6,334

 

 

 

 

5,135

 

Total long-term debt and finance lease liabilities

$

 

399,390

 

 

$

 

481,309

 

The Company’s Amended and Restated Loan and Security Agreement (the “Credit Agreement”) matures December 18, 2023. The Credit Agreement provides for a Tranche A revolving loan of up to $975 million and a Tranche A-1 revolving loan with $40 million of capacity. The Company has the ability to increase the size of the Credit Agreement by an additional $325 million, subject to certain conditions. The Company’s obligations under the Credit Agreement are secured by substantially all of the Company’s personal and real property. The Company may repay all loans in whole or in part at any time without penalty.

Availability under the Credit Agreement is based upon advance rates on certain asset categories owned by the Company, including, but not limited to the following: inventory, accounts receivable, real estate, prescription lists, cigarette tax stamps, and rolling stock.

The Credit Agreement imposes certain requirements, including limitations on dividends and investments, limitations on the Company’s ability to incur debt, make loans, acquire other companies, change the nature of the Company’s business, enter a merger or consolidation, or sell assets. These requirements can be more restrictive depending upon the Company’s Excess Availability, as defined under the Credit Agreement.

Borrowings under the credit facility bear interest at the Company’s option as either Eurodollar loans or Base Rate loans, subject to a grid based upon Excess Availability. The interest rate terms for each of the aforementioned tranches are as follows:

Credit

 

Outstanding as of

 

 

 

 

 

 

Facility

 

January 1, 2022

 

 

 

 

 

 

Tranche

 

(In thousands)

 

 

Eurodollar Rate

 

Base Rate

Tranche A

 

$

 

328,940

 

 

LIBOR plus 1.25% to 1.50%

 

Greater of:

(i) the Federal Funds Rate plus 0.75% to 1.00%

 

 

 

 

 

 

 

 

 

 

(ii) the Eurodollar Rate plus 2.25% to 2.50%

 

 

 

 

 

 

 

 

 

 

(iii) the prime rate plus 0.25% to 0.50%

Tranche A-1

 

$

 

30,700

 

 

LIBOR plus 2.25% to 2.50%

 

Greater of:

(i) the Federal Funds Rate plus 1.75% to 2.00%

 

 

 

 

 

 

 

 

 

 

(ii) the Eurodollar Rate plus 2.25% to 2.50%

 

 

 

 

 

 

 

 

 

 

(iii) the prime rate plus 1.25% to 1.50%

The Company also incurs an unused line of credit fee on the unused portion of the loan commitments at a rate of 0.25%.

The Credit Agreement requires that the Company maintain Excess Availability of 10% of the borrowing base, as defined in the Credit Agreement. The Company is in compliance with all financial covenants as of January 1, 2022 and had Excess Availability after the 10% requirement of $468.5 million and $432.4 million at January 1, 2022 and January 2, 2021, respectively. The Credit Agreement provides for the issuance of letters of credit, of which $16.1 million and $15.6 million were outstanding as of January 1, 2022 and January 2, 2021, respectively.

The weighted average interest rate for all borrowings, including loan fee amortization, was 2.82% for 2021.

At January 1, 2022, aggregate annual maturities and scheduled payments of long-term debt are as follows:

(In thousands)

2022

 

 

2023

 

 

2024

 

 

2025

 

 

2026

 

 

Thereafter

 

 

Total

 

Total borrowings

$

 

6,334

 

 

$

 

364,848

 

 

$

 

5,061

 

 

$

 

4,471

 

 

$

 

5,691

 

 

$

 

21,994

 

 

$

 

408,399