Debt

3 Months Ended

Dec. 31, 2022

Debt

Debt

Note 5. Debt

Long-term debt consisted of the following:

	As of
	December 31,		October 1,
	2022		2022
	(In thousands)
Term loan due 2027, net of issuance costs	$	342,507	$	346,737
Less: Current portion of Term Loan due 2027		17,500		17,500
Long-term debt	$	325,007	$	329,237

Term Loan maturities as of December 31, 2022 by fiscal year are as follows:

	(In Thousands)
Remainder of 2023	$	13,125
2024		13,125
2025		17,500
2026		21,875
2027		280,000
	$	345,625

Revolving Credit Facility

During the fourth quarter of 2022, the Company entered into a Fifth Amended and Restated Credit Agreement (the “Credit Agreement”), that provides for an $800 million revolving credit facility and a $350 million secured term loan (“Term Loan Due 2027”). Subject to the satisfaction of certain conditions, including obtaining additional commitments from existing and/or new lenders, the Company may increase the revolving commitment up to an additional $200 million. The Term Loan Due 2027 was fully drawn upon on the closing date.

Loans under the Credit Agreement bear interest, at the Company’s option, at either the SOFR or a base rate, in each case plus a spread determined based on the Company’s credit rating. Interest on the loans is payable quarterly in arrears with respect to base rate loans and at the end of an interest period (or at three-month intervals if the interest period exceeds three months) in the case of SOFR loans. The outstanding principal amount of all loans under the Credit Agreement, including, the Term Loan Due 2027, together with accrued and unpaid interest, is due on September 27, 2027. The Company is required to repay a portion of the principal amount of the Term Loan Due 2027 equal to 1.25% of the principal in quarterly installments.

Certain of the Company’s domestic subsidiaries are guarantors under the Credit Agreement. The Company and the subsidiary guarantors’ obligations under the Credit Agreement are secured by a lien on substantially all of their respective assets (excluding real property), including cash, accounts receivable and the shares of certain Company subsidiaries, subject to certain exceptions.

As of December 31, 2022, there were no borrowings and $9 million of letters of credit outstanding under the Credit Agreement.

Foreign Short-term Borrowing Facilities

As of December 31, 2022, certain foreign subsidiaries of the Company had a total of $67 million of short-term borrowing facilities available, under which no borrowings were outstanding.

Debt Covenants

The Company’s Credit Agreement requires the Company to comply with certain financial covenants, namely a maximum consolidated leverage ratio and a minimum interest coverage ratio, in both cases measured on the basis of a trailing 12-month look-back period. In addition, the Company’s debt agreements contain a number of restrictive covenants, including restrictions on incurring additional debt, making investments and other restricted payments, selling assets and paying dividends, subject to certain exceptions. The Company was in compliance with these covenants as of December 31, 2022.