Debt, Finance Lease Obligations and Other Financing

6 Months Ended

Apr. 04, 2020

Debt, Finance Lease Obligations and Other Financing

Debt, finance lease obligations and other financing as of April 4, 2020 and September 28, 2019 consisted of the following (in thousands):



	April 4, 2020			September 28, 2019
4.05% Senior Notes, due June 15, 2025	$	100,000		$	100,000
4.22% Senior Notes, due June 15, 2028	50,000			50,000
Borrowings under the credit facility	101,000			95,000
Finance lease and other financing obligations	44,574			44,492
Unamortized deferred financing fees	(1,367		)	(1,512		)
Total obligations	294,207			287,980
Less: current portion	(107,880		)	(100,702		)
Long-term debt and finance lease obligations, net of current portion	$	186,327		$	187,278

On June 15, 2018, the Company entered into a Note Purchase Agreement (the “2018 NPA”) pursuant to which it issued an aggregate of $150.0 million in principal amount of unsecured senior notes, consisting of $100.0 million in principal amount of 4.05% Series A Senior Notes, due on June 15, 2025, and $50.0 million in principal amount of 4.22% Series B Senior Notes, due on June 15, 2028 (collectively, the “2018 Notes”), in a private placement. The 2018 NPA includes customary operational and financial covenants with which the Company is required to comply, including, among others, maintenance of certain financial ratios such as a total leverage ratio and a minimum interest coverage ratio. The 2018 Notes may be prepaid in whole or in part at any time, subject to payment of a make-whole amount; interest on the 2018 Notes is payable semiannually. As of April 4, 2020, the Company was in compliance with the covenants under the 2018 NPA.

On May 15, 2019, the Company refinanced its then-existing senior unsecured revolving credit facility (the "Prior Credit Facility") by entering into a new 5-year senior unsecured revolving credit facility (collectively with the Prior Credit Facility, referred to as the "Credit Facility"), which expanded the maximum commitment from $300.0 million to $350.0 million and extended the maturity from July 5, 2021 to May 15, 2024. The maximum commitment under the Credit Facility may be further increased to $600.0 million, generally by mutual agreement of the Company and the lenders, subject to certain customary conditions. During the six months ended April 4, 2020, the highest daily borrowing was $164.5 million; the average daily borrowings were $122.2 million. The Company borrowed $333.7 million and repaid $327.7 million of revolving borrowings under the Credit Facility during the six months ended April 4, 2020. As of April 4, 2020, the Company was in compliance with all financial covenants relating to the Credit Facility, which are generally consistent with those in the 2018 NPA previously discussed. The Company is required to pay a commitment fee on the daily unused revolver credit commitment based on the Company's leverage ratio; the fee was 0.125% as of April 4, 2020. To further ensure our ability to meet our working capital and fixed capital requirements, the Company entered into Amendment No. 1 to the Credit Facility on April 29, 2020, among the Company, the lenders party thereto and JPMorgan Chase Bank, N.A., as administrative agent (the “Agent”) in response to the COVID-19 outbreak. The agreement amended the Credit Facility among the Company, the other subsidiary borrowers from time to time party thereto, the lenders from time to time party thereto and the Agent (the “Existing Credit Facility”; the Existing Credit Facility as amended by the Amendment, the “Credit Facility”). Refer to Note 17, "Subsequent Event," for further information regarding the Amendment.

The fair value of the Company’s debt, excluding finance leases, was $249.5 million and $252.3 million as of April 4, 2020 and September 28, 2019, respectively. The carrying value of the Company's debt, excluding finance leases and other financing obligations, was $251.0 million and $245.0 million as of April 4, 2020 and September 28, 2019, respectively. If measured at fair value in the financial statements, the Company's debt would be classified as Level 2 in the fair value hierarchy. Refer to Note 4, "Derivatives," for further information regarding the Company's fair value calculations and classifications.