LONG-TERM DEBT

12 Months Ended

Dec. 28, 2024

Debt Disclosure [Abstract]

LONG-TERM DEBT

(10) LONG-TERM DEBT

Long-term debt as of December 28, 2024 and December 30, 2023 was as follows:

	December 28,		December 30,
	2024		2023
5.00% senior unsecured notes due in fiscal 2044 (a)	$	450,000	$	450,000
5.25% senior unsecured notes due in fiscal 2054 (b)		305,000		305,000
Unamortized discount on 5.00% and 5.25% senior unsecured notes (a) (b)		(19,239)		(19,665)
Revolving credit agreement (c)		—		377,899
Other notes		1,246		2,015
Debt issuance costs		(6,374)		(6,645)
Long-term debt		730,633		1,108,604
Less: Current installments of long-term debt		692		719
Long-term debt, excluding current installments	$	729,941	$	1,107,885

(a) The 5.00% senior unsecured notes due in fiscal 2044 have an aggregate principal amount of $450,000, with an unamortized discount balance of $12,168 as of December 28, 2024. These notes bear interest at 5.00% per annum and are due on October 1, 2044. The discount will be amortized and recognized as interest expense over the term of the notes as interest payments are made. The notes may be repurchased prior to maturity, in whole or in part, at any time at 100% of their principal amount, plus a make-whole premium and accrued interest. These notes are guaranteed by certain subsidiaries of the Company.

(b) The 5.25% senior unsecured notes due in fiscal 2054 have an aggregate principal amount of $305,000, with an unamortized discount balance of $7,071 as of December 28, 2024. These notes bear interest at 5.25% per annum and are due on October 1, 2054. The discount will be amortized and recognized as interest expense over the term of the notes as interest payments are made. The notes may be repurchased prior to maturity, in whole or in part, at any time

at 100% of their principal amount, plus a make-whole premium and accrued interest. These notes are guaranteed by certain subsidiaries of the Company.

(c) On October 18, 2021, the Company along with its wholly-owned subsidiaries Valmont Industries Holland B.V. and Valmont Group Pty. Ltd., as borrowers, amended and restated the revolving credit agreement with the Company’s lenders. The maturity date of the revolving credit facility was extended to October 18, 2026. This facility provides for $800,000 in committed unsecured revolving credit loans, with available borrowings of up to $400,000 in foreign currencies. The Company may increase the credit facility by up to an additional $300,000 at any time, subject to lenders agreeing to increase their commitments. The interest rate on the borrowings will be, at the Company’s option:

(i) the term Secured Overnight Financing Rate (“SOFR”) (based on a one-, three-, or six-month interest period, as selected by the Company) plus a 10-basis-point adjustment and a spread of 100 to 162.5 basis points, depending on the credit rating of the Company’s senior unsecured long-term debt published by S&P Global Ratings and Moody’s Investors Service, Inc.;

(ii) the higher of

● the prime lending rate,

● the overnight bank rate plus 50 basis points, and

● term SOFR (based on a one-month interest period) plus 100 basis points,

plus, in each case, 0 to 62.5 basis points, depending on the credit rating of the Company’s senior unsecured long-term debt published by S&P Global Ratings and Moody’s Investors Service, Inc.; or

(iii) daily simple SOFR plus a 10-basis-point adjustment and a spread of 100 to 162.5 basis points, depending on the credit rating of the Company’s senior unsecured long-term debt published by S&P Global Ratings and Moody’s Investors Service, Inc.

As of December 28, 2024, the Company had no outstanding borrowings under its revolving credit facility. This facility has a maturity date of October 18, 2026 and includes a financial covenant that may limit the ability to borrow additional funds under the agreement. As of December 28, 2024, the Company could borrow $799,838 under the facility, after accounting for standby letters of credit totaling $162 related to certain insurance obligations. The Company also maintains short-term bank lines of credit totaling $30,895, of which $29,226 remained unused as of December 28, 2024.

The revolving credit facility includes a financial leverage covenant, with which the Company was in compliance as of December 28, 2024. The minimum aggregate maturities of long-term debt for each of the five fiscal years following the fiscal year ended December 28, 2024 are as follows: $692, $512, $42, $0, and $0.

The obligations under the 5.00% senior unsecured notes due in fiscal 2044, the 5.25% senior unsecured notes due in fiscal 2054, and the revolving credit facility are guaranteed by the Company and its wholly owned subsidiaries Valmont Telecommunications, Inc., Valmont Coatings, Inc., Valmont Newmark, Inc., and Valmont Queensland Pty. Ltd.