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Long-Term Debt
 12 Months Ended
Dec. 30, 2023
Debt Disclosure [Abstract]  
Long-Term Debt

Note 6 – Long-Term Debt

Long-term debt consists of the following:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 30,

 

 

December 31,

 

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2023

 

 

2022

 

Senior secured revolving credit facility, due November 2027

$

 

522,492

 

 

$

 

445,880

 

Finance lease liabilities (Note 10)

 

 

74,639

 

 

 

 

57,515

 

Other, 3.71% - 4.36%, due 2024 - 2033

 

 

4,743

 

 

 

 

4,813

 

Total debt - Principal

 

 

601,874

 

 

 

 

508,208

 

Unamortized debt issuance costs

 

 

(4,394

)

 

 

 

(4,627

)

Total debt

 

 

597,480

 

 

 

 

503,581

 

Less current portion

 

 

8,813

 

 

 

 

6,789

 

Total long-term debt and finance lease liabilities

$

 

588,667

 

 

$

 

496,792

 

 

In 2023, the Company entered into amendments (the "Amendments") to the Company's Amended and Restated Loan and Security Agreement (the "Credit Agreement"). The principal terms of the Amendments included increasing the size of the Tranche A portion of the Company's revolving credit facility by $130 million in 2023. The Credit Agreement provides for a Tranche A revolving loan of up to $1.17 billion and a Tranche A-1 revolving loan with $40 million of capacity. The Company has the ability to increase the amount borrowed under the Credit Agreement by an additional $195 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 restrictions on the Company, 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 SOFR 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

 

December 30, 2023

 

 

 

 

 

 

Tranche

 

(In thousands)

 

 

SOFR Rate

 

Base Rate

Tranche A

 

$

 

485,379

 

 

SOFR plus 1.25% to 1.50%

 

Greater of:

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

 

 

 

 

 

 

 

 

 

(ii) the SOFR Rate plus 1.25% to 1.50%

 

 

 

 

 

 

 

 

 

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

Tranche A-1

 

$

 

37,113

 

 

SOFR plus 2.25% to 2.50%

 

Greater of:

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

 

 

 

 

 

 

 

 

 

(ii) the SOFR 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 December 30, 2023 and had Excess Availability after the 10% requirement of $483.2 million and $447.8 million at December 30, 2023 and December 31, 2022, respectively. The Credit Agreement provides for the issuance of letters of credit, of which $17.7 million were outstanding as of December 30, 2023 and December 31, 2022.

The weighted average interest rate for all borrowings, including loan fee amortization, was 7.03% for 2023. Refer to Note 8 for further information on the interest rate swap.

At December 30, 2023, aggregate annual maturities and scheduled payments of long-term debt are as follows:

(In thousands)

2024

 

 

2025

 

 

2026

 

 

2027

 

 

2028

 

 

Thereafter

 

 

Total

 

Total borrowings

$

 

8,813

 

 

$

 

8,693

 

 

$

 

10,024

 

 

$

 

530,098

 

 

$

 

7,530

 

 

$

 

36,716

 

 

$

 

601,874