XML 118 R17.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Credit Facilities
12 Months Ended
Dec. 28, 2019
Debt Disclosure [Abstract]  
CREDIT FACILITIES

10.  CREDIT FACILITIES

Total long-term non-revolving debt consists of the following:

 

Maturity Date

 

December 28, 2019

 

 

December 29, 2018

 

Long-term non-revolving debt:

 

 

 

 

 

 

 

 

 

Term loan credit facility with PNC Bank

4/3/2023

 

$

91,250

 

 

$

96,250

 

Term loan credit facility with Shinhan Bank

3/30/2020

 

 

862

 

 

 

895

 

Other long-term debt

Various

 

 

376

 

 

 

838

 

Total long-term non-revolving debt

 

 

 

92,488

 

 

 

97,983

 

Less: current portion of long-term non-revolving debt

 

 

7,623

 

 

 

5,215

 

Less: unamortized debt issuance costs

 

 

 

803

 

 

 

1,048

 

Total long-term non-revolving debt, net

 

 

$

84,062

 

 

$

91,720

 

Information on the Company's revolving credit facilities is as follows:

 

 

 

Balance

 

 

Available credit

 

 

Maturity Date

 

December 28, 2019

 

 

December 29, 2018

 

 

December 28, 2019

 

 

December 29, 2018

 

Revolving line of credit with PNC

4/3/2023

 

$

208,708

 

 

$

255,750

 

 

$

191,292

 

 

$

144,250

 

67

Future maturities of total debt are as follows:

Year:

 

 

 

2020

$

7,872

 

2021

 

7,654

 

2022

 

9,458

 

2023

 

276,212

 

Total

$

301,196

 

Term Loan and Line of Credit with PNC Bank

The Company has a revolving line of credit and term loan credit facility with PNC Bank, National Association, as administrative agent, and the lenders party thereto. The revolving line of credit allows for up to an aggregate maximum principal amount of $400,000. The credit agreement includes an accordion feature that permits the increase of the facility by up to an additional $200,000. Borrowings under the line of credit bear interest at defined rates plus an applicable margin based on the Company’s leverage ratio.

The credit agreement requires the Company to comply with a number of restrictive covenants, including limitations on the Company’s ability to incur indebtedness; create or maintain liens on its property or assets; make investments, loans and advances; repurchase shares of its common stock; engage in acquisitions, mergers, joint ventures, consolidation and asset sales; and pay dividends and distributions. The Company (together with its subsidiaries) is also required to comply with certain financial tests, including a minimum interest coverage ratio (as defined therein) of 3.0 to 1.0 and a maximum leverage ratio of 3.75 to 1.0. As of December 28, 2019, the Company was in compliance with all covenants related to the credit agreement.

The credit facility is guaranteed by the Company’s U.S. domestic subsidiaries and requires any future U.S. domestic subsidiaries to join as guarantors. In addition, the credit facility is required to be secured by substantially all of the assets of the Company and its current and future U.S. domestic subsidiaries of the Company.

During 2019, the Company exchanged a portion of the USD denominated borrowings on the line of credit for €100,000 in order to hedge currency exposure in foreign operations. The Company designated the borrowings as a net investment hedge, see additional information in Note 9.

The effective interest rate on the credit agreement at December 28, 2019, was 2.88%. Interest expense recognized on the credit agreement during the years ended December 28, 2019, December 29, 2018 and December 30, 2017 was $14,149, $12,799 and $4,082, respectively.

Other Credit Facilities

The Company has entered into a credit agreement with Shinhan Bank that provides a term loan of 1,000,000 Korean won. The loan matures in March 2020, at which time the full amount will become due.  Interest is charged at a one-year variable rate, 1.87% as of December 28, 2019.  

The Company had a revolving line of credit with National Australia Bank that allowed for maximum borrowings of 3,000 Australian dollars. The line was secured by assets of Customer Fluidpower. At December 29, 2018, no amounts were drawn on the line. The facility matured on January 31, 2019, at which time the facility was closed.

The Company’s other long-term debt consists of auto loans payable to National Australia Bank. Principal and interest payments are due monthly. The loans mature at various dates through July 2023. Interest is charged at various rates ranging from 4.5% to 5.1%.