Long-Term Debt

12 Months Ended

Dec. 27, 2024

Debt Disclosure [Abstract]

Long-Term Debt

Note 8 – Long-Term Debt

Long-term debt consists of the following:

	December 27, 2024		December 29, 2023
Term loan	$	129,375	$	135,000
Revolving credit facility	—		115,000
Total principal amount of long-term debt	129,375		250,000
Less unamortized debt issuance costs	(852)		(1,317)
Total long-term debt, net	128,523		248,683
Less current portion	(7,500)		(7,500)
Total long-term debt, less current portion, net	$	121,023	$	241,183

Maturities of long-term debt consist of the following:

2025	$	7,500
2026	121,875
Total	$	129,375

The weighted average interest rate across our credit facilities was 7.31%, 6.80%, and 3.37% during 2024, 2023, and 2022, respectively.

On October 29, 2021, we entered into an amended and restated credit agreement, which includes a group of financial institutions as direct lenders underlying the agreement that was subsequently amended on September 30, 2024 (the "credit agreement"). The credit agreement includes a $150.0 million term loan facility and a $250.0 million revolving credit facility (together, “credit facilities”). Term loan payments of $1.9 million are due on a quarterly basis. The credit agreement matures on October 29, 2026.

Our credit agreement is secured by our tangible and intangible assets and includes customary representations, warranties, and covenants. We are required to maintain a minimum fixed charge coverage ratio of 1.25 : 1 and a maximum leverage ratio of 3.50 : 1.

Interest is charged at either the Base Rate or SOFR (as such terms are defined in the credit agreement) at our option, plus an applicable margin. The Base Rate is equal to the higher of i) the Prime Rate, ii) the Federal Funds Rate plus 0.5%, or iii) SOFR plus 1.00%. The applicable margin on Base Rate and SOFR loans is 0.375‑1.375% and 1.375‑2.375% per annum, respectively, depending on our leverage ratio, which is based on trailing 12‑month EBITDA, as defined in our credit agreement. We are also charged a commitment fee of 0.175-0.350%, depending on our leverage ratio, on the unused portion of our revolving credit facility. Base Rate interest payments and commitment fees are due quarterly. SOFR rate interest payments are due on the last day of the applicable interest period, or quarterly for applicable interest periods longer than three months. At December 27, 2024, our credit facilities bore interest under the SOFR option of 6.56%.

Prior to September 30, 2024, the variable, or floating, portion of our borrowing rate was based on BSBY instead of SOFR.