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Subsequent Events
6 Months Ended
Jul. 01, 2011
Subsequent Events  
Subsequent Events
21. Subsequent Events

On July 22, 2011 the Company entered into a new $400 million asset-based revolving credit facility ("New Credit Facility"). The New Credit Facility replaced the Company's prior $400 million Amended Credit Facility which was set to mature in July 2012. The New Credit Facility contains restrictions in areas consistent with the Amended Credit Facility, including limitations on, among other things, distributions and dividends, acquisitions and investments, indebtedness, liens and affiliate transactions. In the aggregate, however, the restrictions in the New Credit Facility provide the Company greater flexibility than those under the Amended Credit Facility, and generally only apply in the event that the Company's availability under the New Credit Facility falls below certain specific thresholds.

The New Credit Facility has a term of five years, and provides for a committed revolving credit line of up to $400 million, of which $40 million is available in a Canadian multi-currency tranche. The New Credit Facility includes a springing maturity concept which is generally applicable only if its $355 million convertible notes due 2013 or its $125 million senior floating rates due 2015 are not repaid or refinanced within 90 days of their maturity. The commitment amount under the New Credit Facility may be increased by an additional $100 million, subject to certain conditions and approvals as set forth in the credit agreement. The Company will capitalize deferred financing costs in connection with the New Credit Facility. In addition, the New Credit Facility requires maintenance of a minimum fixed charge coverage ratio of one to one if availability under the New Credit Facility is less than $40 million or 10% of the then existing aggregate lender commitment under the facility.

The New Credit Facility may be used for working capital and general corporate purposes and is guaranteed by substantially all of the U.S. and Canadian assets (excluding certain intellectual property and Canadian real estate) of the Company and certain of its U.S. and Canadian subsidiaries and by a pledge of 65% of the equity interests of certain of the Company's foreign subsidiaries.

Borrowings under the New Credit Facility bear interest based on the daily balance outstanding at an applicable rate per annum calculated quarterly and varied based on the Company's average availability as set forth in the credit agreement. The New Credit Facility also carries a commitment fee equal to the available but unused borrowings multiplied by an applicable margin (varying from 0.375% to 0.50%).