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Long-Term Indebtedness

9 Months Ended

Oct. 03, 2021

3. Long-Term Indebtedness

Credit Facility

As of October 3, 2021, our credit facility consisted of a $481.0 million revolving credit loan facility (the “Second Amended and Restated Revolving Loan”) and a $479.0 million Tranche B Term Loan facility (the “Second Amended and Restated Term Loan B”) pursuant to the amended and restated credit facility that we entered into in 2019 (the “Second Amended and Restated Credit Facility”) and further amended in both April 2020 and August 2020.

As of October 3, 2021, December 31, 2020 and September 30, 2020, no advances under the Second Amended and Restated Revolving Loan were outstanding (excluding amounts reserved for letters of credit in the amount of $20.2 million, $20.8 million and $21.7 million, respectively). Interest on the Second Amended and Restated Revolving Loan accrues at an annual rate of LIBOR plus an applicable margin with an unused commitment fee based on our senior secured leverage ratio. As of October 3, 2021, the Second Amended and Restated Revolving Loan unused commitment fee was 0.625%. The Second Amended and Restated Revolving Loan matures on April 17, 2024.

As of October 3, 2021, December 31, 2020 and September 30, 2020, $479.0 million was outstanding under the Second Amended and Restated Term Loan B. Interest on the Second Amended and Restated Term Loan B accrues at an annual rate of LIBOR plus 1.75%. In June 2019, we entered into swap agreements with an aggregate notional value of $300 million to mitigate the risk of an increase in the LIBOR interest rate in effect on the Second Amended and Restated Term Loan B. In August 2019, we entered into additional swap agreements with an aggregate notional value of $400 million to further mitigate the risk of an increase in the LIBOR interest rate in effect on the Second Amended and Restated Term Loan B. As of October 3, 2021, the applicable interest rate on the Second Amended and Restated Term Loan B was 3.00%. The Second Amended and Restated Term Loan B matures on April 17, 2026.

In conjunction with a $315.0 million repayment of the Second Amended and Restated Term Loan B in April 2020, certain of our interest rate swap agreements were de-designated as the hedged interest was no longer probable to occur. We hold and issue derivative instruments for risk management purposes only and do not utilize derivative instruments for trading or speculative purposes. Accordingly, in April 2020 we entered into counter-agreements to economically offset the impact of the de-designated swap agreements.

2024 Notes, 2025 Notes and 2027 Notes

In June 2016, Holdings issued $300.0 million of 4.875% senior unsecured notes due 2024 and, in April 2017, issued an additional $700.0 million of senior unsecured notes due 2024 (together, the “2024 Notes”). In April 2017, Holdings issued $500.0 million of 5.50% senior notes due 2027 (the "2027 Notes"). In April 2020, SFTP issued $725.0 million of 7.00% senior secured notes due 2025 (the “2025 Notes”). As of October 3, 2021, $949.5 million of the 2024 Notes, $725.0 million of the 2025 Notes, and $500.0 million of the 2027 Notes, were issued and outstanding. Interest payments of $23.1 million for the 2024 Notes are due semi-annually on January 31 and July 31 of each year. Interest payments of $25.4 million for the 2025 Notes are due semi-annually on January 1 and July 1 each year. Interest payments of $13.8 million for the 2027 Notes are due semi-annually on April 15 and October 15 of each year.

Long-Term Indebtedness Summary

As of October 3, 2021, December 31, 2020, and September 30, 2020, the principal balance of our long-term debt consisted of the following:


	As of
(Amounts in thousands)	October 3, 2021		December 31, 2020		September 30, 2020
Second Amended and Restated Term Loan B	$	479,000	$	479,000	$	479,000
2024 Notes		949,490		949,490		949,490
2025 Notes		725,000		725,000		725,000
2027 Notes		500,000		500,000		500,000
Net discount		(3,526)		(4,357)		(4,633)
Deferred financing costs		(22,161)		(26,492)		(27,937)
Total long-term debt	$	2,627,803	$	2,622,641	$	2,620,920

Fair-Value of Long-Term Indebtedness

As of October 3, 2021, December 31, 2020, and September 30, 2020, the fair value of our long-term debt excluding discounts and deferred financing costs was $2,692.4 million, $2,693.3 million and $2,559.1 million, respectively.