DEBT

3 Months Ended

Sep. 25, 2024

Debt Disclosure [Abstract]

Debt

Long-term debt consists of the following:

	September 25, 2024		June 26, 2024
Revolving credit facility	$	25.0	$	—
5.000% notes(1)	350.0		350.0
8.250% notes	350.0		350.0
Finance lease obligations	101.1		105.4
Total long-term debt	826.1		805.4
Less: unamortized debt issuance costs and discounts	(4.6)		(5.0)
Total long-term debt, less unamortized debt issuance costs and discounts	821.5		800.4
Less: current installments of long-term debt and finance leases(2)	(14.6)		(14.1)
Total long-term debt, less current portion	$	806.9	$	786.3

(1)Obligations under our 5.000% notes have been classified as long-term, reflecting our intent and ability to refinance these notes through our existing revolving credit facility. Subsequent to the end of the first quarter, on October 1, 2024, our $350.0 million 5.000% notes matured and the payoff was funded with borrowings from our revolving credit facility.

(2)Current installments of long-term debt consist of finance leases and are recorded within Other accrued liabilities in the Consolidated Balance Sheets (Unaudited). Refer to Note 4 - Accrued Liabilities for further details.

Revolving Credit Facility

In the thirteen week period ended September 25, 2024, net borrowings of $25.0 million were drawn on our revolving credit facility. As of September 25, 2024, $875.0 million of credit was available under the revolving credit facility.

The $900.0 million revolving credit facility matures on August 18, 2026 and bears interest at a rate of SOFR plus an applicable margin of 1.60% to 2.35% and an undrawn commitment fee of 0.25% to 0.35%, both based on a function of our debt-to-cash-flow ratio. As of September 25, 2024, our interest rate was 6.46% consisting of SOFR of 4.86% plus the applicable margin and spread adjustment of 1.60%.

Financial Covenants

The indentures for our 5.000% notes and the 8.250% notes contain certain covenants, including, but not limited to, limitations and restrictions on the ability of the Company and its Restricted Subsidiaries (as defined in the indentures) to (i) create liens on Principal Property (as defined in the indenture) and (ii) merge, consolidate or amalgamate with or into any other person or sell, transfer, assign, lease, convey or otherwise dispose of all or substantially all of their property. These covenants are subject to a number of important conditions, qualifications, exceptions, and limitations.

Our debt agreements contain various financial covenants that, among other things, require the maintenance of certain leverage ratios. As of September 25, 2024, we were in compliance with our covenants pursuant to the $900.0 million revolving credit facility and under the terms of the indentures governing our 5.000% and 8.250% notes.