Debt

12 Months Ended

Dec. 25, 2021

Debt Disclosure [Abstract]

Debt

Debt

(In thousands)	2021		2020
Subordinated Debentures with interest at 6.00%, due 2027	$	—	$	284,479
Revolving Credit Facility with interest at 1.25%, due 2021	—		35,000
Jungwoo-Mueller credit facility with interest at 1.90%, due 2021	—		5,811
2001 Series IRB's with interest at 1.14%, due 2021	—		250
Other	2,940		2,555
	2,940		328,095
Less debt issuance costs	(1,065)		(219)
Less current portion of debt	(811)		(41,283)
Long-term debt	$	1,064	$	286,593

Credit Agreement

On March 31, 2021, the Company entered into a Credit Agreement to replace its prior credit agreement that would have matured on December 6, 2021. The Company’s total borrowing capacity under the Credit Agreement is $500.0 million. The Credit Agreement provides for an unsecured $400.0 million revolving credit facility, which matures on March 31, 2026, and a term loan facility of $100.0 million, with an original maturity date of March 31, 2022.  The term loan was fully repaid in 2021, reducing the total borrowing capacity under the Credit Agreement to $400.0 million. Borrowings under the Revolving Credit Facility bear interest, at the Company’s option, at the Eurocurrency Rate which is determined by the underlying currency of the Credit Extension or the Base Rate as defined by the Credit Agreement, plus a variable premium.  Advances may be based upon the one, three, or six-month interest period.  The variable premium is based upon the Company’s debt to total capitalization

ratio, and can range from 112.5 to 162.5 basis points for Eurocurrency Rate loans and 12.5 to 62.5 basis points for Base Rate loans.  At December 25, 2021, the premium was 115.0 basis points for Eurocurrency Rate loans and 15.0 basis points for Base Rate loans.  Additionally, a commitment fee is payable quarterly on the total commitment less any outstanding loans or issued letters of credit, and varies from 15.0 to 30.0 basis points based upon the Company’s debt to total capitalization ratio.  Availability of funds under the Revolving Credit Facility is reduced by the amount of certain outstanding letters of credit, which are used to secure the Company’s payment of insurance deductibles, certain retiree health benefits, and other corporate obligations, totaling approximately $28.9 million at December 25, 2021.  Terms of the letters of credit are generally renewable annually.

Subordinated Debentures

During the first quarter of 2021, the Company announced the redemption of its Subordinated Debentures due 2027. The full redemption of outstanding debentures occurred on April 15, 2021 for a total of $291.4 million in principal plus accrued interest and a redemption premium of $5.7 million that was expensed during the second quarter.

Jungwoo-Mueller

Jungwoo-Mueller has several secured revolving credit arrangements with a total borrowing capacity of KRW 20.0 billion (or approximately $16.8 million).  Borrowings are secured by the real property and equipment of Jungwoo-Mueller.

Covenants contained in the Company’s financing obligations require, among other things, the maintenance of minimum levels of tangible net worth and the satisfaction of certain minimum financial ratios.  At December 25, 2021, the Company was in compliance with all debt covenants.

Aggregate annual maturities of the Company’s debt are as follows:

(In thousands)	Amount
2022	$	811
2023	222
2024	222
2025	185
2026	—
Thereafter	1,500
Long-term debt	$	2,940

Net interest expense consisted of the following:

(In thousands)	2021		2020		2019
Interest expense	$	8,096	$	19,510	$	25,957
Capitalized interest	(387)		(263)		(274)
	$	7,709	$	19,247	$	25,683

Interest paid in 2021, 2020, and 2019 was $13.9 million, $19.8 million, and $25.4 million, respectively.