LONG TERM DEBT

9 Months Ended

Sep. 26, 2020

Debt Disclosure [Abstract]

LONG TERM DEBT

LONG-TERM DEBT

We are party to senior secured credit agreement (the “Credit Facility”) that provides for a $150.0 million Revolving Credit Facility maturing on December 17, 2024 and a $300.0 million Term Loan A maturing on December 17, 2024 (the “Term Loan A”).

In March 2020, we drew down $50.0 million from our $150.0 million Revolving Credit Facility. This action was a precautionary measure to enhance our liquidity position and to increase available cash on hand in response to the COVID-19 pandemic. During the second quarter of 2020, we repaid in full the $50.0 million borrowed under the Revolving Credit Facility. For further information, refer to Note 2 - Impact of the COVID-19 Pandemic. As of September 26, 2020, we had no outstanding borrowings and $150.0 million of borrowings available under the Revolving Credit Facility.

In September 2020, we made a $50.0 million voluntary prepayment on our Term Loan A from excess cash on hand. At September 26, 2020, we had $238.8 million principal amount of indebtedness outstanding under our Term Loan A.

The weighted average interest rates for borrowings under Term Loan A and the Revolving Credit Facility were 2.93% and 2.92%, respectively, during the nine months ended September 26, 2020, and 6.25% for the Term Loan A during the nine months ended September 28, 2019.

Borrowings made under the Credit Facility bear interest at a variable rate based on the LIBOR plus an applicable margin. The applicable margin for LIBOR rate borrowings is determined by reference to a pricing grid, based on the ratio of our net leverage ratio, and ranges from 1.75% to 2.75%. Additionally, a commitment fee of between 0.175% and 0.375% also determined by reference to the pricing grid, is payable on the average daily unused amounts under the Revolving Credit Facility.