Debt

9 Months Ended

Sep. 24, 2023

Debt Disclosure [Abstract]

Debt

8. Debt

Long-term debt, net, consists of the following (in thousands):

	September 24, 2023		December 25, 2022
Senior notes	$	400,000	$	400,000
Revolving facilities (a)	390,789		205,000
Outstanding debt	$	790,789	$	605,000
Unamortized debt issuance costs	(6,790)		(7,931)
Current portion of long-term debt	(14,789)		—
Total long-term debt, net	$	769,210	$	597,069

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(a)    Revolving facilities as of September 24, 2023 includes $14.8 million outstanding under the PJMF Revolving Facility as defined and discussed below.

Senior Notes

On September 14, 2021, the Company issued $400.0 million of 3.875% senior notes (the “Notes”) which will mature on September 15, 2029. Interest on the Notes is payable semi-annually in cash in arrears on March 15 and September 15 of each year at a fixed interest rate of 3.875% per annum. Refer to Note 12 of the consolidated financial statements in our Annual Report on Form 10-K for the year ended December 25, 2022. for further description of the provisions and covenant requirements under the Senior Notes.

Credit Agreement

The Company’s amended and restated credit agreement, dated September 14, 2021 (the “Credit Agreement”) provides for a senior secured revolving credit facility in an aggregate available principal amount of $600.0 million (the “PJI Revolving Facility”), of which up to $40.0 million is available as swingline loans and up to $80.0 million is available as letters of credit. The PJI Revolving Facility will mature on September 14, 2026. The remaining availability under the PJI Revolving Facility was approximately $224.0 million as of September 24, 2023. Refer to Note 12 of the consolidated financial statements in our Annual Report on Form 10-K for the year ended December 25, 2022 for further description of the provisions and covenant requirements under the Credit Agreement.

PJMF Revolving Facility

PJMF has a $20.0 million revolving line of credit (the “PJMF Revolving Facility”) pursuant to a Revolving Loan Agreement, dated September 30, 2015 with U.S. Bank National Association, as lender. The PJMF Revolving Facility is secured by substantially all assets of PJMF. The PJMF Revolving Facility matures on September 30, 2023, but is subject to annual amendments. The borrowings under the PJMF Revolving Facility accrue interest at a variable rate of a one month SOFR plus 1.60%. The applicable interest rate on the PJMF Revolving facility was 6.9% for the three months ended September 24, 2023. As of September 24, 2023, the principal amount of debt outstanding under the PJMF Revolving Facility was approximately $14.8 million and is classified as Current portion of long-term debt in the Condensed Consolidated Balance Sheets. The PJMF operating results and the related debt outstanding do not impact the financial covenants under the Credit Agreement.

On September 30, 2023, the Company amended the PJMF Revolving Facility to, among other items: (i) extend the maturity date to September 30, 2024; (ii) amend the variable interest rate to a one month SOFR plus 1.975%; and (iii) expand the capacity from $20.0 million to $30.0 million.

Derivative Financial Instruments

On June 23, 2023, the Company entered into a new interest rate swap with an initial notional value of $100.0 million to replace the Company’s prior interest swaps, which had a notional value of $125.0 million and matured on April 30, 2023. The objective of the interest rate swap is to mitigate the Company’s exposure to the impact of interest rate changes associated with our variable rate debt under the PJI Revolving Facility. We have designated the interest rate swap as a cash flow hedge and will assess hedge effectiveness at regular intervals through the maturity date of June 30, 2025. The interest rate swaps are recorded at fair value at each reporting date, and any unrealized gains or losses are included in Accumulated

other comprehensive loss in the Condensed Consolidated Balance Sheets and reclassified to Net interest expense in the Condensed Consolidated Statements of Operations in the same period or periods during which the hedged transaction affect earnings.

As of September 24, 2023, we have the following interest rate swap agreements:

Effective Dates	Floating Rate Debt		Fixed Rates
June 23, 2023 through June 30, 2025	$	50 million	4.55%
June 23, 2023 through June 30, 2025	$	50 million	4.55%

The following table provides information on the location and amounts of our current and expired swaps in the accompanying condensed consolidated financial statements (in thousands):

	Interest Rate Swap Derivatives
Balance Sheet Location	Fair Value September 24, 2023		Fair Value December 25, 2022
Other current assets	$	726	$	986
Other assets	$	59	$	—

The effect of derivative instruments on the accompanying condensed consolidated financial statements is as follows (in thousands):

Derivatives - Cash Flow Hedging Relationships	Amount of Gain or (Loss) Recognized in AOCL on Derivative		Location of (Loss) or Gain Reclassified from AOCL into Income	Amount of (Loss) or Gain Reclassified from AOCL into Income		Total Net Interest Expense on Condensed Consolidated Statements of Operations
Interest rate swaps for the three months ended:
September 24, 2023	$	801	Interest expense	$	203	$	(11,378)
September 25, 2022	$	901	Interest expense	$	(1,650)	$	(7,623)
Interest rate swaps for the nine months ended:
September 24, 2023	$	2,225	Interest Expense	$	(40)	$	(31,674)
September 25, 2022	$	3,664	Interest Expense	$	(1,850)	$	(17,967)

Net interest paid, including payments made or received under the swaps, was $11.2 million and $9.6 million for the three months ended September 24, 2023 and September 25, 2022, respectively, and $28.0 million and $22.2 million for the nine months ended September 24, 2023 and September 25, 2022, respectively.