Note 5 Debt

9 Months Ended

Jun. 29, 2019

Debt

Long-term debt consisted of the following:



	As of
	June 29, 2019		September 29, 2018
	(In thousands)
Senior secured notes due 2019 ("2019 Notes")	$	—	$	375,000
Term loan due 2023 ("Term Loan"), net of issuance costs	370,222		—
Non-interest bearing promissory notes	14,884		17,667
Total long-term debt	385,106		392,667
Less: Current portion of non-interest bearing promissory notes	14,884		3,321
Current portion of long-term debt	18,750		375,000
Long-term debt	$	351,472	$	14,346

On November 30, 2018, the Company entered into a Fourth Amended and Restated Credit Agreement (the "Amended Cash Flow Revolver") that provided for a committed $375 million Term Loan.

On April 5, 2019, the Company entered into an amendment to the Amended Cash Flow Revolver that increased the amount available under the facility from $500 million to $700 million upon satisfaction of certain conditions, including repayment in full of the Company’s 2019 Notes.

On May 31, 2019, the Company drew down the Term Loan and used the proceeds to repay the Company's 2019 Notes. There was no gain or loss associated with the extinguishment of the 2019 Notes. As of June 29, 2019, costs incurred in connection with the amendment of the Amended Cash Flow Revolver above and Term Loan are classified as long-term debt and are being amortized to interest expense over the life of the Term Loan using the effective interest method.

Following the satisfaction and discharge of the Indenture dated as of June 4, 2014 (the "Indenture"), using the proceeds of the Term Loan, and the release of all liens securing the 2019 Notes, the Company’s debt structure changed as follows, effective June 3, 2019: (i) revolving commitments under the Amended Cash Flow Revolver increased for a total of $700 million in revolving commitments, (ii) the accordion feature of the Amended Cash Flow Revolver was reset so that the Company can obtain, subject to the satisfaction of specified conditions, additional revolving commitments in an aggregate amount of up to $200 million, and (iii) the Company and its subsidiary guarantors’ obligations under the Amended Cash Flow Revolver became secured by substantially all of the assets (excluding real property) of the Company and the subsidiary guarantors, subject to certain exceptions.

Loans under the Amended Cash Flow Revolver bear interest, at the Company's option, at either the LIBOR or a base rate, in each case plus a spread determined based on the Company's credit rating. Interest on the loans is payable quarterly in arrears with respect to base rate loans and at the end of an interest period in the case of LIBOR loans. A portion of the principal amount of the loans is required to be repaid in quarterly installments. The outstanding principal amount of all loans under the Amended Cash Flow Revolver, including, the Term Loan, together with accrued and unpaid interest, is due on the maturity date. The $375 million Term Loan has a maturity date of November 30, 2023 and the Company is required to repay a portion of the principal amount of the loan equal to 1.25% in quarterly installments.

Maturities of the Term Loan as of June 29, 2019 by fiscal year are as follows:



	(In Thousands)
2019	$4,688
2020	$18,750
2021	$18,750
2022	$18,750
2023	$18,750
2024	$295,312
	$375,000

Certain of the Company’s domestic subsidiaries are required to be guarantors in respect of the Amended Cash Flow Revolver. The Company and the subsidiary guarantors’ obligations under the Amended Cash Flow Revolver are secured by property of the Company and such guarantors, including, but not limited to cash, accounts receivables, inventory and the shares of the Company's subsidiaries, subject to limited exceptions.

The Amended Cash Flow Revolver requires the Company to comply with a minimum consolidated interest coverage ratio, measured at the end of each fiscal quarter, and at all times a maximum consolidated leverage ratio. The Amended Cash Flow Revolver contains customary affirmative covenants, including covenants regarding the payment of taxes and other obligations, maintenance of insurance, reporting requirements and compliance with applicable laws and regulations.

As of June 29, 2019, there were $121 million of borrowings and $8 million of letters of credit outstanding under the Amended Cash Flow Revolver.

As of June 29, 2019, certain foreign subsidiaries of the Company had a total of $72 million of short-term borrowing facilities, under which no borrowings were outstanding.

Debt covenants

The Company's Amended Cash Flow Revolver requires the Company to comply with certain financial covenants. In addition, the Company's debt agreements contain a number of restrictive covenants, including restrictions on incurring additional debt, making investments and other restricted payments, selling assets and paying dividends, subject to certain exceptions. The Company was in compliance with these covenants as of June 29, 2019.