Credit Agreement

9 Months Ended

Sep. 26, 2020

Our credit facility as of September 26, 2020, had a total commitment amount of $450 million. The credit facility is for general corporate purposes and to meet our seasonal working capital requirements. The credit agreement provides the lenders with a collateral security interest in substantially all of our assets and those of our subsidiaries and requires us to comply with, among other things, a maximum leverage ratio (4.5x) and a minimum interest coverage ratio (3.0x). The credit agreement includes an accordion feature which allows us to increase the amount of the credit facility from $450 million to $600 million, subject to lenders' approval. Under the terms of the credit agreement, we pay a variable rate of interest and a commitment fee based on our leverage ratio. The credit agreement matures in February 2024. We were in compliance with all financial covenants as of September 26, 2020.

On April 3, 2020, we amended the credit agreement to add a 364-day term loan facility up to an aggregate commitment of $75 million under our credit agreement for a total commitment amount of $525 million, with an additional $75 million remaining available under our accordion (subject to lenders' approval). The additional borrowings were undertaken as a precautionary measure to provide increased liquidity and preserve financial flexibility in light of disruption and uncertainty resulting from the COVID-19 pandemic. On September 24, 2020, we repaid the 364-day, $75 million term loan. On October 5, 2020, we further amended the credit agreement to remove the share repurchase restriction and eliminate the floor based on LIBOR of at least 0.75% from our $450 million credit agreement that were added in the April 3, 2020 amendment.

The following table summarizes our borrowings under the credit facility ($ in thousands):


	September 26, 2020			December 28, 2019
Outstanding borrowings	$	33,500		$	231,000
Outstanding letters of credit	$	3,997		$	3,497
Additional borrowing capacity	$	412,503		$	215,503
Weighted-average interest rate	2.5		%	3.5		%