Credit Agreement

3 Months Ended

Apr. 03, 2021

Debt Disclosure [Abstract]

Credit Agreement

Credit Agreement

Our credit facility as of April 3, 2021, had a net aggregate availability of $450 million. The credit facility is for general corporate purposes, to meet our seasonal working capital requirements and to repurchase our stock. 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). Under the terms of the credit agreement, we pay a variable rate of interest and a commitment fee based on our leverage ratio. We were in compliance with all financial covenants as of April 3, 2021.

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

	April 3, 2021			January 2, 2021
Outstanding borrowings	$	314,900		$	244,200
Outstanding letters of credit	$	3,997		$	3,997
Additional borrowing capacity	$	131,103		$	201,803
Weighted-average interest rate	1.5		%	1.5		%

On April 21, 2021, we amended our revolving credit facility to increase our net aggregate availability from $450 million to $600 million. We maintained the accordion feature which allows us to increase the amount of the credit facility from $600 million to $800 million, subject to lenders’ approval. The amended credit facility matures in February 2024. There were no other significant changes to the credit facility’s terms and conditions.