Long-Term Obligations

12 Months Ended

Dec. 30, 2023

Debt Disclosure [Abstract]

Long-Term Obligations

6. LONG-TERM OBLIGATIONS

Long-term obligations consisted of the following as of December 30, 2023 and December 31, 2022 (dollar amounts in thousands):

Instrument	Stated Maturity Date	Contractual Interest Rate	Interest Rate as of December 30, 2023	December 30, 2023			December 31, 2022
2021 Extended Term Loan (1)	07/2028	S + 3.75%	9.24%	$	899,750		$	908,950
Second Lien Term Loan (1)	12/2029	S + 7.00%	12.54%		415,000			415,000
Revolving Credit Facility (1)	04/2026	S + 3.75%	9.24%		-			-
Total principal amount of long-term obligations					1,314,750			1,323,950
Less: unamortized debt issuance costs					(29,209	)		(33,668	)
Total amount of long-term obligations, net of unamortized debt issuance costs					1,285,541			1,290,282
Less: current portion of long-term obligations					(9,200	)		(9,200	)
Total amount of long-term obligations, net of unamortized debt issuance costs, less current portion				$	1,276,341		$	1,281,082
(1) S = Greater of 0.50% or one-month SOFR, plus a CSA

Scheduled future maturities of term loans for each of the next five years subsequent to December 30, 2023 are as follows (amounts in thousands):

Year Ending:
December 28, 2024	$	9,200
January 3, 2026		9,200
January 2, 2027		9,200
January 1, 2028		9,200
December 30, 2028		862,950
Thereafter		415,000
Total	$	1,314,750

On June 30, 2023, the Company entered into the Ninth Amendment to the 2021 Extended Term Loan and the First Amendment to the Second Lien Term Loan. The Company entered into these amendments in order to remove and replace the LIBOR-based interest rate benchmark provisions with interest rate benchmark provisions based on a term secured overnight financing rate ("SOFR").

On March 11, 2021, the Company entered into an amendment to the Revolving Credit Facility that increased availability thereunder from $75.0 million to $200.0 million and extended the maturity date to April 29, 2026 upon the Company's refinancing of its term loans on July 15, 2021.

On July 15, 2021 the Company entered into an Extension Amendment (the “Extension Amendment”) to its First Lien Credit Agreement, originally dated March 16, 2017, with Barclays Bank, as administrative agent, the collateral agent, a letter of credit issuer, and swingline lender, and the lenders and other agents party thereto from time to time (as amended to date, the “First Lien Credit Agreement”). The Extension Amendment converted outstanding balances under all remaining first lien term loans into a single term loan in an aggregate principal amount of $860.0 million (the “2021 Extended Term Loan”), and extended the maturity date to July 2028.

On August 9, 2022, the Company borrowed $60.0 million under the delayed draw term loan facility under the First Lien Credit Agreement (the “Delayed Draw Term Loan Facility” and such borrowing, the “Delayed Draw Term Loan”)), the terms of which are similar to those of the 2021 Extended Term Loan, and as a result the balance related to the Delayed Draw Term Loan is presented together with the 2021 Extended Term Loan in the table above. At the time of borrowing, the Company transferred a proportionate share of the debt issuance costs from other long-term assets to a direct deduction of the carrying amount of the debt. On November 16, 2022, the Company terminated the remaining Delayed Draw Term Loan Facility of $140.0 million. At the time of the termination, the Company expensed the remaining unamortized debt issuance costs within other long-term assets to interest expense in the accompanying consolidated statements of operations.

The 2021 Extended Term Loan and the Delayed Draw Term Loan bear interest, at the Company’s election, at a variable interest rate based on either SOFR (subject to a minimum of 0.50%), or prime or federal funds rate (“Annual Base Rate” or “ABR”) (subject to a minimum of 2.00%) for the interest period relevant to such borrowing, plus a CSA of 0.10% and an applicable margin of 3.75% for loans accruing interest based on SOFR and an applicable margin of 2.75% for loans accruing interest based on ABR. The Revolving Credit Facility bears interest, at the Company's election, at a variable interest rate based on either SOFR (subject to a minimum of 0.50%) or ABR (subject to a minimum of 2.00%) for the interest period relevant to such borrowing, plus a CSA of 0.10% and an applicable margin of 3.75% for loans accruing interest based on SOFR and an applicable margin of 2.75% for loans accruing interest based on ABR. As of December 30, 2023, the principal amount of the 2021 Extended Term Loan and borrowings under the Revolving Credit Facility accrued interest at a rate of 9.24%.

On December 10, 2021, the Company entered into a Second Lien Credit Agreement (the “Second Lien Credit Agreement”) with a syndicate of lending institutions and Barclays Bank, as administrative agent and collateral agent. The Second Lien Term Loan has an aggregate principal amount of $415.0 million and a maturity date of December 10, 2029. The Second Lien Term Loan bears interest at a rate per annum equal to, at the Company’s option, either (1) an applicable margin (equal to 6.00%) plus a base rate determined by reference to the highest of (a) 0.50% per annum plus the Federal Funds Effective Rate, (b) the Prime Rate and (c) the SOFR rate for an interest period of one month plus a CSA depending on the interest period plus 1.00%; or (2) an applicable margin (equal to 7.00%) plus SOFR and a CSA depending on the interest period; provided that such rate is not lower than a floor of 0.50%. As of December 30, 2023, the principal amount of the Second Lien Term Loan accrued interest at a rate of 12.54%.

On March 23, 2023, the Company amended the First Lien Credit Agreement to increase the sublimit for letters of credit under the Revolving Credit Facility to $40.0 million from $30.0 million. The other terms of the Revolving Credit Facility remained unchanged.

Debt issuance costs related to the term loans are recorded as a direct deduction from the carrying amount of the debt. The balance for debt issuance costs related to the term loans as of December 30, 2023 and December 31, 2022 was $29.2 million and $33.7 million, respectively. Debt issuance costs related to the Revolving Credit Facility are recorded within other long-term assets. The balance for debt issuance costs related to the Revolving Credit Facility as of December 30, 2023 and December 31, 2022 was $0.0 million and $0.2 million, respectively. The Company recognized interest expense related to the amortization of debt issuance costs of $4.7 million and $7.4 million for the fiscal years ended December 30, 2023 and December 31, 2022, respectively.

Issued letters of credit as of December 30, 2023 and December 31, 2022 were $31.9 million and $19.7 million, respectively. Unused letters of credit as of December 30, 2023 and December 31, 2022 were $8.1 million and $10.3 million, respectively. There were no swingline loans outstanding as of December 30, 2023 and December 31, 2022. Borrowing capacity under the Company's Revolving Credit Facility was $168.1 million as of December 30, 2023 and $180.3 million as of December 31, 2022. Available borrowing capacity under the Revolving Credit Facility is subject to a maintenance leverage covenant that becomes effective if more than 30% of the total commitment is utilized.

The fair value of the Company's long-term obligations was estimated using market observable inputs for the Company’s comparable peers with public debt, including quoted prices in active markets, which are considered Level 2 inputs. The aggregate fair value of the Company's long-term obligations was $1,141.6 million at December 30, 2023.

The Company was in compliance with all financial covenants and restrictions at December 30, 2023 and December 31, 2022.