Note 4 - Long-term Debt

6 Months Ended

Jul. 02, 2017

Notes to Financial Statements

Debt Disclosure [Text Block]

NOTE

4

– LONG-TERM DEBT

Syndicated Credit Facility

The Company has a syndicated credit facility (the “Facility”) pursuant to which the lenders provide to the Company and certain of its subsidiaries a multicurrency revolving credit facility and provide to the Company a term loan. Interest on base rate loans is charged at varying rates computed by applying a margin depending on the Company’s consolidated net leverage ratio as of the most recently completed fiscal quarter. Interest on LIBOR-based loans and fees for letters of credit are charged at varying rates computed by applying a margin over the applicable LIBOR rate, depending on the Company’s consolidated net leverage ratio as of the most recently completed fiscal quarter. In addition, the Company pays a commitment fee per annum (depending on the Company’s consolidated net leverage ratio as of the most recently completed fiscal quarter) on the unused portion of the Facility.

As of

July 2, 2017,

the Company had outstanding

$177.5

million of term loan borrowings and

$52.9

million of revolving loan borrowings under the Facility, and had

$2.6

million in letters of credit outstanding under the Facility. As of

July 2, 2017,

the weighted average interest rate on borrowings outstanding under the Facility was

2.6%.

The Company is required to make quarterly amortization payments of the term loan borrowing. The amortization payments are due on the last day of the calendar quarter. The quarterly amortization payment amount was

$3.75

million for the

second

quarter of

2017

and will remain this amount for all future quarters until maturity.

The Company is currently in compliance with all covenants under the Facility and anticipates that it will remain in compliance with the covenants for the foreseeable future.

On

August 8, 2017,

subsequent to the end of the

second

quarter of

2017,

the Company amended and restated the syndicated credit facility. The terms and conditions of the amended and restated credit facility (the “Amended Facility”) are substantially similar to the preceding Facility, with the following key changes:

● The Amended Facility matures in August of 2022;

● The restricted payments covenant in the Amended Facility has been liberalized (and now allows for, among other things, the repurchase of the full amount of the new share repurchase program described above); and

● Permits the potential release of the lenders’ liens on certain real property and equipment in connection with an anticipated property tax abatement transaction in Georgia.

Other Lines of Credit

Subsidiaries of the Company have an aggregate of the equivalent of

$9.8

million of other lines of credit available at interest rates ranging from

2.5%

to

6.5%.

As of

July 2, 2017,

there were

no

borrowings outstanding under these lines of credit.