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Notes, Mortgage Notes and Obligations Payable
3 Months Ended
Apr. 02, 2016
Debt Disclosure [Abstract]  
Notes, Mortgage Notes and Obligations Payable
Notes, Mortgage Notes and Obligations Payable

Senior Secured Asset-Based Revolving Credit Facility (the "ABL Facility")

As of April 2, 2016, the Company had approximately $64.0 million in outstanding borrowings and approximately $12.3 million in outstanding letters of credit under the ABL Facility. Based on the February 2016 borrowing base calculations, at April 2, 2016, the Company had excess availability of approximately $223.7 million and approximately $193.7 million of excess availability before triggering the cash deposit requirements under the ABL Facility, as in effect on such date.

As of May 6, 2016, the Company had approximately $105.0 million in outstanding borrowings and approximately $12.3 million in outstanding letters of credit under the ABL Facility. Based on the March 2016 borrowing base calculations, at May 6, 2016, the Company had excess availability of approximately $182.7 million and approximately $152.7 million of excess availability before triggering the cash deposit requirements under the ABL Facility, as in effect on such date.

On May 9, 2016, the Company entered into an amendment (the “Amendment”) to the ABL Facility. Among other changes, the Amendment (i) increases the maximum amount of the ABL Facility (which, following the Amendment, is available solely to the Company and certain of its U.S. subsidiaries) from $300.0 million to $325.0 million, with a right of the Company to increase the ABL Facility by up to an additional $125.0 million, subject to the receipt of commitments from the lenders providing such increase and the satisfaction of certain other conditions, (ii) eliminates the portion of the ABL Facility previously available to certain of the Company’s Canadian subsidiaries (subject to certain rights of the Company to re-establish such availability with certain limits) and releases all guarantees and collateral security previously provided by such Canadian subsidiaries, (iii) lowers the interest rates payable by the Company under the ABL Facility (as more fully described below), (iv) extends the maturity date of the ABL Facility from June 13, 2017 to May 9, 2021, and (v) expands certain baskets and permissions available to the Company under certain of the operational covenants with which the Company must comply and in the calculation of the borrowing base, as more fully set forth in the Amendment. 

The interest rates applicable to loans under the ABL Facility as amended by the Amendment are, at the Company’s option, equal to either an adjusted LIBOR rate for a one, two, three or six month interest period (or such period of 365 days or less, if consented to by the relevant lenders) or an alternate base rate, plus an applicable margin percentage ranging from 1.25% to 1.75% for borrowings based on the adjusted LIBOR rate, and 0.25% to 0.75% for borrowings based on the alternate base rate, depending on the Company’s Average Excess Availability Percentage (as defined in the amended ABL Facility); provided that, for any fiscal quarter of the Company commencing with the fiscal quarter ending December 31, 2016, if the Company’s Consolidated Total Leverage Ratio (as defined in the amended ABL Facility) as of the end of the preceding fiscal quarter is less than 4.0 to 1.0, then the applicable margin percentage will be reduced by 0.25% (but in any event not below 1.25% for borrowings based on the adjusted LIBOR rate or 0.25% for borrowings based on the alternate base rate). The alternate base rate will be the greater of (1) the Federal Funds rate plus 0.50%, (2) 1.00% plus the LIBOR rate for a 30 day interest period as determined on such day, or (3) the prime rate. Interest is payable at the end of the selected interest period, but no less frequently than quarterly.

Debt Covenant Compliance

The indentures and other agreements governing the Company's indebtedness and the indebtedness of its subsidiaries contain certain restrictive financial and operating covenants, including covenants that restrict, among other things, the Company's ability and the ability of its subsidiaries to complete acquisitions, pay dividends, incur indebtedness, make investments, sell assets, and take certain other corporate actions (all as defined in the indentures and other agreements). As of April 2, 2016, the Company had the capacity to make certain payments, including dividends, of approximately $146.1 million.

As of April 2, 2016, the Company was in compliance with all covenants under the indenture that governs the 8.5% Notes and the credit agreements that govern the ABL Facility and the Term Loan Facility. Additionally, the Company anticipates compliance with all covenants under the indenture that governs the 8.5% Notes and the credit agreements that govern the ABL Facility and the Term Loan Facility for the foreseeable future.