Subsequent Event

6 Months Ended

Apr. 04, 2020

Subsequent Events [Abstract]

Subsequent Event

Subsequent Event

To further ensure our ability to meet our working capital and fixed capital requirements, the Company entered into Amendment No. 1 to the Credit Facility on April 29, 2020, among the Company, the lenders party thereto and JPMorgan Chase Bank, N.A., as administrative agent in response to the COVID-19 outbreak. The agreement amended the Credit Facility among the Company, the other subsidiary borrowers from time to time party thereto, the lenders from time to time party thereto and the Agent. The Amendment amended certain provisions of the Existing Credit Facility to, among other things, provide for a $138 million unsecured delayed draw term loan facility. Subject to the prior reduction or termination of the term loan commitments in accordance with the Credit Facility, the term loan commitments will be available to the Company until July 28, 2020. Term loans borrowed under the new facility will be funded in a single draw and will mature on April 28, 2021. The proceeds of the term loans will be used to prepay outstanding revolving and swing line loans under the Credit Facility and for general corporate purposes of the Company and its subsidiaries. The Company subsequently drew the full amount of the unsecured delayed draw term loan facility.

Outstanding term loans will bear interest, at the Company’s option, at a eurocurrency rate plus a margin of 1.75% per annum or at a base rate plus a margin of 0.75% per annum. In addition, the Company is required to pay, on a quarterly basis, a ticking fee at a rate equal to 0.75% per annum on the average daily aggregate unused term loan commitments from the effective date of the Amendment to and including the date all of the term loan commitments are terminated in accordance with the terms of the Credit Facility.