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Debt
 12 Months Ended
Oct. 02, 2020
Debt Disclosure [Abstract]  
Debt DEBT
As of October 2, 2020, we are party to a credit agreement dated as of May 8, 2014 with a syndicate of lenders and Goldman Sachs Bank USA (“Goldman Sachs”), as administrative agent (as amended on February 13, 2015, August 31, 2016, March 10, 2017, May 19, 2017, May 2, 2018 and May 9, 2018, the “Credit Agreement”).
As of October 2, 2020, the Credit Agreement consisted of term loans with an original principal amount of $700.0 million ("Term Loans") and a revolving credit facility with an aggregate, undrawn borrowing capacity of $160.0 million (“Revolving Facility”). The Revolving Facility will mature in November 2021 and the Term Loans will mature in May 2024 and bear interest at: (i) for LIBOR loans for any interest period, a rate per annum equal to the LIBOR rate as determined by the administrative agent, plus an applicable margin of 2.25%; and (ii) for base rate loans, a rate per annum equal to the greater of (a) the prime rate quoted in the print edition of the Wall Street Journal, Money Rates Section, (b) the federal funds rate plus one-half of 1.00% and (c) the LIBOR rate applicable to a one-month interest period plus 1.00% (but, in each case, not less than 1.00%), plus an applicable margin of 1.25%.
All principal amounts outstanding and interest rate information as of October 2, 2020, for the Credit Agreement were as follows (in thousands, except rate data):
Principal OutstandingLIBOR RateMarginEffective Interest Rate
Term loans$666,0870.15%2.25%2.40%
As of October 2, 2020, approximately $5.1 million of deferred financing costs remain unamortized, of which $4.8 million is related to the Term Loans and is recorded as a direct reduction of the recognized debt liabilities in our accompanying Consolidated Balance Sheet, and $0.3 million is related to the Revolving Facility and is recorded in other long-term assets in our accompanying Consolidated Balance Sheet.
The Term Loans and Revolving Facility are secured by a first priority lien on substantially all of our assets and provide that we must comply with certain financial and non-financial covenants.
The Term Loans are payable in quarterly principal installments of approximately $1.7 million on the last business day of each calendar quarter, with the remainder due on the maturity date. In the event that we divest a business, the net cash proceeds of the divestment are generally required, subject to certain exceptions, to be applied to repayment of outstanding Term Loans except to the extent we reinvest such proceeds in assets useful for our business within 18 months of receiving the proceeds. If we enter into a binding agreement to reinvest such proceeds within 18 months of receiving them, we have until the later of 18 months following our receipt of the proceeds and six months following the date of such agreement to complete the reinvestment.
As of October 2, 2020, we had $160.0 million of borrowing capacity under our Revolving Facility, of which we may borrow up to $50.0 million without being subject to certain financial covenants.
As of October 2, 2020, the following remained outstanding on the Term Loans:
October 2, 2020September 27,
2019
Principal balance$666,087 $672,971 
Unamortized discount(2,205)(3,414)
Unamortized deferred financing costs(4,825)(7,400)
Total term loans659,057 662,157 
Current portion6,885 6,885 
Long-term, less current portion$652,172 $655,272 
As of October 2, 2020, the minimum principal payments under the Term Loans in future fiscal years were as follows (in thousands):
Fiscal year ending:Amount
2021$6,885 
20226,885 
20236,885 
2024645,432 
Total$666,087 
The fair value of the Term Loans was estimated to be approximately $649.4 million as of October 2, 2020 and was determined using Level 2 inputs, including a quoted price from a bank.