Debt

9 Months Ended

Sep. 28, 2024

Debt Disclosure [Abstract]

Debt Disclosure

The Company’s debt as of September 28, 2024 and December 31, 2023 consisted of the following:

(In thousands)	September 28, 2024		December 31, 2023
Senior secured term loans B due 2029 at 4.71% (1)	900,000		1,373,774
Senior secured notes due 2029 at 4.75%	1,600,000		1,600,000
Senior unsecured notes due 2030 at 5.95%	895,000		895,000
Senior unsecured notes due 2029 at 3.625%	400,000		400,000
Senior unsecured notes due 2028 at 4.375%	400,000		400,000
Revolving facility due 2027 at 7.08% (2)	—		—
Total debt (par value)	4,195,000		4,668,774
Unamortized discount and debt issuance costs	69,310		91,633
Total debt, net	4,125,690		4,577,141
Less current portion of long-term debt	65,000		—
Total long-term debt, net	$	4,060,690	$	4,577,141

Annual maturities of long-term debt, excluding unamortized discount and debt issuance costs, due as of September 28, 2024 were as follows:

(In thousands)	Remaining 2024	2025	2026	2027	2028	Thereafter	Total
Long-term debt obligation maturities*	$65,000 (3)	—	—	—	400,000	3,730,000	$	4,195,000

* Senior secured term loans B subject to Excess Cash Flow payments to the lenders.

(1) The Company entered into a floating-to-fixed swap contract on its variable rate debt under our senior secured term loan facility due 2029. The effective interest rate after consideration of this floating-to-fixed swap contract was 4.71%. Refer to Note 9 for a description of our interest rate swap contract.

(2) Our senior secured revolving credit facility due 2027 (the “Revolving Facility”) bears interest at a rate per annum equal to SOFR, plus an applicable margin of 1.75%. The Revolving Facility has commitments of $575.0 million.

(3) On September 30, 2024, the Company repaid a total of $65.0 million of the outstanding borrowings under the senior secured term loans B due 2029. The Company has classified the debt associated with the repayment as a current liability in the condensed consolidated balance sheets as of September 28, 2024, based on both its intent and ability to repay the debt within the next 12 months.

Senior secured term loans B due 2029

On March 28, 2024, the Company and certain of its subsidiaries entered into Amendment No. 3 (the “Third Amendment”), with the lenders party thereto and Morgan Stanley Senior Funding, Inc., as administrative agent, which amended the Credit and Guaranty Agreement, dated as of November 6, 2018 (as amended and restated as of July 6, 2022 and as subsequently amended on each of March 10, 2023 and September 11, 2023, the “Existing Credit Agreement” and, the Existing Credit Agreement as amended by the Third Amendment, the “Amended Credit Agreement”), by and among the Company, as borrower, certain subsidiaries of the Company party thereto, as guarantors, the lenders party thereto and Morgan Stanley Senior Funding, Inc., as administrative agent and collateral agent.

The Third Amendment provides for, among other things, the reduction of the applicable rate of the Company’s outstanding senior secured term loans B under the Existing Credit Agreement. After giving effect to the Third Amendment, such outstanding term loans B bear interest, at a rate per annum equal to, at the Company’s option, either (i) Term SOFR plus an applicable margin of 1.75% or (ii) a base rate plus an applicable margin of 0.75%. Other than as described herein (and more fully described in the Third Amendment), the terms of the Amended Credit Agreement are substantially similar to the terms of the Existing Credit Agreement. In connection with the Third Amendment, the Company made a prepayment of $354.5 million on the term loans B.

During the three and nine months ended September 28, 2024, the Company repaid a total of $0.0 million and $473.8 million of the outstanding borrowings under the term loans B. For more information concerning repayments of outstanding borrowings under our term loans B, please see Note 14. Subsequent Events. In connection with these repayments and entry into the Third Amendment, the Company incurred a pre-tax loss on extinguishment and modification of debt of $0.0 million and $12.3 million for the three and nine months ended September 28, 2024, respectively, which is included in Other (income) expense, net in the condensed consolidated statements of operations.