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Debt Agreements
 9 Months Ended
Sep. 24, 2021
Debt Disclosure [Abstract]  
Debt Agreements Debt Agreements
On August 4, 2017, the Company’s wholly owned subsidiary, Wirepath LLC (“Borrower”) entered into a credit agreement (as amended from time to time, “Credit Agreement”), consisting of a senior secured term loan (“Initial Term Loan”) and a senior secured revolving credit facility (“Revolving Credit Facility”). On February 5, 2018, the Borrower repriced the Credit Agreement to reduce the margin on the Initial Term Loan and Revolving Credit Facility. On October 31, 2018, the Borrower repriced the Initial Term Loan facility to further reduce the margin under the Initial Term Loan, increased the aggregate amount of the Initial Term Loan, and further reduced the margin under the Revolving Credit Facility. On August 1, 2019, the Borrower amended the Credit Agreement to borrow an additional senior secured term loan (“Incremental Term Loan” and, together with the Initial Term Loan, as amended, “Term Loans”) and increased the commitments under the Revolving Credit Facility. The Company makes fixed equal quarterly installments on the Term Loans in an amount equal to 1.0% per annum of the total aggregate principal thereof immediately after borrowing, with balance due at maturity.
InstrumentMaturity DateAmountInterest Rate
Effective rate
(as of September 24, 2021)
Credit Agreement (as amended)
Initial Term Loan 8/4/2024292,355 
LIBOR plus 4.00%
4.15 %
Incremental Term Loan 8/4/2024390,000 
LIBOR plus 4.75%
4.90 %
Revolving Credit Facility 8/4/202260,000 
LIBOR plus 4.00%
4.15 %
Credit Agreement (at origination)
Initial Term Loan 8/4/2024265,000 
LIBOR plus 5.25%
Revolving Credit Facility 8/4/202250,000 
LIBOR plus 5.25%


The Company may also be required to make additional payments under the financing agreement equal to a percentage of the Company’s annual excess cash flows or net proceeds from any non-ordinary course asset sales or certain debt issuances, if any. The lender has the option to decline the prepayment. As of December 25, 2020, in accordance with these provisions, the Company estimated a mandatory excess cash flow payment offer related to the term loans of $14,325 to the lender. The entire amount of the expected payment was classified within current maturities of long-term debt on the consolidated balance sheet as of December 25, 2020. After the issuance of the Company’s audited financial statements as of and for the period ended December 25, 2020, the Company elected an option available in the financing agreement to accelerate the consideration of expected cash outlays in fiscal year 2021 that would eliminate the requirement for an excess cash flow payment for fiscal year 2020. As a result, the estimated excess cash payment was not made and only the contractual payments under the financing agreement are considered current maturities of long-term debt as of September 24, 2021.

During the three months ended September 24, 2021, the Company used a portion of the net proceeds from the IPO to prepay $216,902 in aggregate of the amount of the Incremental Term Loan outstanding under the Credit Agreement. The prepayment consisted of $215,874 in principal plus accrued interest of $1,028. In connection with the prepayment, the Company wrote off a proportionate amount of the unamortized debt issuance costs at the time of the prepayment. The unamortized debt issuance costs are allocated between the remaining original loan balance and the portion of the loan paid down on a pro-rata basis. During the three months and nine months ended September 24, 2021, the Company incurred a charge of $6,645 related to the write-off of unamortized debt issuance costs which was recorded in other expenses on our condensed consolidated statements of operations. As of September 24, 2021, the outstanding principal balance on the Incremental Term Loan was $167,301 and is due at maturity.

As of September 24, 2021, and December 25, 2020, the Company had no borrowings outstanding under the Revolving Credit Facility and $4,894 of outstanding letters of credit. The amount available under the Revolving Credit Facility was $55,106 as of September 24, 2021, and December 25, 2020. The Company borrowed $47,375 under the Revolving Credit Facility during the first half of 2020 in order to enhance liquidity as a precautionary measure in response to the COVID-19 pandemic, and repaid $40,000 of the borrowings during the nine months ended September 25, 2020. The remainder of the borrowings were repaid in full later in the year ending December 25, 2020.
As of September 24, 2021, the future scheduled maturities of the above notes payable are as follows:

Remainder of 2021
$1,462 
20222,924 
20232,924 
2024444,307 
Total future maturities of long-term debt451,617 
Unamortized debt issuance costs(10,017)
Total indebtedness441,600 
Less: Current maturities of long-term debt2,924 
Long-term debt$438,676 

Unamortized costs related to the issuance of the Term Loans were $10,017 and $20,595 as of September 24, 2021, and December 25, 2020, and are presented as a direct deduction from the carrying amount of long-term debt. Unamortized costs related to the issuance of the Revolving Credit Facility were $308 and $583 as of September 24, 2021, and December 25, 2020, and are included in other assets in the condensed consolidated balance sheets. The costs related to debt issuances are amortized to interest expense over the life of the related debt. As of September 24, 2021, the future amortization of debt issuance costs is as follows:

Remainder of 2021
$973 
20223,742 
20233,525 
20242,085 
Total$10,325 

Debt Covenants and Default Provisions — There have been no changes to the debt covenants or default provisions related to the Company’s outstanding debt arrangements or other obligations during the current year. The Company was in compliance with all debt covenants as of September 24, 2021, and December 25, 2020. For additional information on the Company’s debt arrangements, debt covenants and default provisions, see Note 8 of the Notes to the Consolidated Financial Statements for the year ended December 25, 2020, in the Prospectus.