Long-Term Debt

9 Months Ended

Sep. 28, 2024

Long-Term Debt [Abstract]

Long-Term Debt

Note 7 – Long-Term Debt

Long-term debt consists of the following:

	September 28, 2024			December 31, 2023
Credit facility	$	-		$	-
Convertible senior notes, due 2025		95,102			95,102
Convertible senior notes, due 2030		750,000			750,000
Deferred financing costs		(24,303	)		(26,914	)
		820,799			818,188
Less current portion		-			-
	$	820,799		$	818,188

The following table summarizes some key facts and terms regarding the outstanding convertible senior notes as of September 28, 2024:

	2025 Notes			2030 Notes
Issuance date	June 12, 2018			September 12, 2023
Maturity date	June 15, 2025		*	September 15, 2030
Principal amount as of September 28, 2024	$	95,102		$	750,000
Cash coupon rate (per annum)		2.25	%		2.25	%
Conversion rate (per $1 principal amount)		32.1955			33.1609
Effective conversion price (per share)	$	31.06		$	30.16
130% of the current effective conversion price (per share)	$	40.38		$	39.21

*As the Company has the intent and ability to refinance its convertible senior notes due 2025 (the "2025 Notes") upon maturity using its revolving credit facility, the 2025 Notes remain classified as long-term liabilities.

On August 15, 2024, the Company entered into an amendment to its credit agreement with a consortium of banks led by JPMorgan Chase Bank, N.A., as administrative agent, and the lenders and other parties thereto (the "Credit Facility").

The amendment redefines the Interest Coverage Ratio to remove Capital Expenditures from the calculation, increases the minimum Interest Coverage Ratio to 3.25 to 1.00, increases the threshold of Indebtedness of Foreign Subsidiaries to the greater of $300,000 and 15% of Consolidated Tangible Net Worth as of the last day of the fiscal quarter for which financial statements are delivered, and increases the threshold of Investments of Subsidiaries that are not Loan Parties to $300,000.

Other significant terms and conditions of the Credit Facility have not been modified.

Deferred financing costs are recognized as non-cash interest expense.  Non-cash interest expense was $1,249 and $3,675 for the fiscal quarter and nine fiscal months ended September 28, 2024, respectively, and $883 and $2,521 for the fiscal quarter and nine fiscal months ended September 30, 2023, respectively.

Subsequent to the end of the third fiscal quarter of 2024, the Company repurchased $40,684 principal amount of 2025 Notes.  The repurchase was funded with a draw on the Credit Facility.