Long-term Debt

3 Months Ended

Apr. 05, 2020

Debt Disclosure [Abstract]

Long-term Debt

LONG-TERM DEBT

Syndicated Credit Facility

At April 5, 2020, the Company maintained an amended and restated Syndicated Credit Facility (the “Facility”) which provided to the Company and certain of its subsidiaries a multicurrency revolving loan and U.S. denominated and multicurrency term loans. Interest on base rate loans was charged at varying rates computed by applying a margin depending on the Company’s consolidated net leverage ratio as of the most recently completed fiscal quarter. Interest on LIBOR-based loans and fees for letters of credit were charged at varying rates computed by applying a margin over the applicable LIBOR rate, depending on the Company’s consolidated net leverage ratio as of the most recently completed fiscal quarter. In addition, the Company paid a commitment fee per annum (depending on the Company’s consolidated net leverage ratio as of the most recently completed fiscal quarter) on the unused portion of the Facility.

Debt issuance costs are reflected as a reduction of long-term debt in accordance with applicable accounting standards.  As these fees are expensed over the life of the outstanding borrowing, the debt balance will increase by the same amount as the fees that are expensed. As of April 5, 2020, the unamortized debt costs recorded as a reduction of long-term debt were $5.8 million.

As of April 5, 2020, the Company had outstanding $570.7 million of term loan borrowing and $62.4 million of revolving loan borrowings under the Facility, and had $1.6 million in letters of credit outstanding under the Facility. As of April 5, 2020, the weighted average interest rate on borrowings outstanding under the Facility was 2.91%. As of April 5, 2020, the carrying value of the Company’s borrowings under the Facility approximates its fair value as the Facility bears interest rates that are similar to existing market rates.

Under the Facility, the Company is required to make quarterly amortization payments of the term loan borrowings, which are due on the last day of the calendar quarter.

The Company is currently in compliance with all covenants under the Facility.

Other Lines of Credit

Subsidiaries of the Company have an aggregate of the equivalent of $9.0 million of other lines of credit available at interest rates ranging from 2.0% to 6.0%. As of April 5, 2020, there were no borrowings outstanding under these lines of credit.