FY2021 10-K Document - FINAL 11 15 21 - Flipbook - Page 58
Table of Contents
Note 9 - Indebtedness
We maintain short-term line of credit facilities with banks throughout the world that are principally demand lines
subject to revision by the banks.
Long-term debt consists of:
October 2,
2021
$
321,886
7,000
500,000
80,000
1,280
910,166
(6,446)
(80,365)
$
823,355
U.S. revolving credit facility
SECT revolving credit facility
Senior notes 4.25%
Securitization program
Other long-term debt
Senior debt
Less deferred debt issuance cost
Less current installments
Long-term debt
October 3,
2020
$
362,136
6,000
500,000
69,000
1,661
938,797
(8,465)
(350)
$
929,982
On October 15, 2019, we amended and restated our U.S. revolving credit facility, which matures on October 15, 2024.
Our U.S. revolving credit facility has a capacity of $1,100,000 and provides an expansion option, which permits us to
request an increase of up to $400,000 to the credit facility upon satisfaction of certain conditions. The credit facility is
secured by substantially all of our U.S. assets. The loan agreement contains various covenants which, among others,
specify interest coverage and maximum leverage. We are in compliance with all covenants. The weighted-average
interest rate on the majority of the outstanding credit facility borrowings is 1.59% and is principally based on LIBOR
plus the applicable margin, which was 1.5% at October 2, 2021.
The SECT has a revolving credit facility with a borrowing capacity of $35,000, maturing on July 26, 2024. Interest is
based on LIBOR plus an applicable margin of 2.13%. A commitment fee is also charged based on a percentage of the
unused amounts available and is not material.
On December 13, 2019, we completed the sale of $500,000 aggregate principal amount of 4.25% senior notes due
December 15, 2027 with interest paid semiannually on June 15 and December 15 of each year, which commenced on
June 15, 2020. The senior notes are unsecured obligations, guaranteed on a senior unsecured basis by certain
subsidiaries and contain normal incurrence-based covenants and limitations such as the ability to incur additional
indebtedness, pay dividends, make other restricted payments and investments, create liens and certain corporate
acts such as mergers and consolidations. The aggregate net proceeds of $491,769 were used to repay indebtedness
under our U.S. revolving credit facility, thereby increasing the unused portion of our U.S. revolving credit facility. The
effective interest rate for these notes after considering the amortization of deferred debt issuance costs is 4.60%.
On December 13, 2019, we issued a notice of redemption to the holders of our 5.25% senior notes due on
December 1, 2022, to redeem and retire all of the outstanding notes. The notes were redeemed on January 13, 2020
at 101.313% pursuant to an early redemption right. We redeemed the aggregate principal amount of $300,000 using
proceeds drawn from our U.S. revolving credit facility. The associated loss on redemption includes $3,939 of call
premium paid to external bondholders.
The Securitization Program matures on October 29, 2021 and effectively increases our borrowing capacity by up to
$80,000. Under the Securitization Program, we sell certain trade receivables and related rights to an affiliate, which in
turn sells an undivided variable percentage ownership interest in the trade receivables to a financial institution, while
maintaining a subordinated interest in a portion of the pool of trade receivables. Interest for the Securitization Program
is 0.95% at October 2, 2021 and is based on 30-day LIBOR plus an applicable margin. A commitment fee is also
charged based on a percentage of the unused amounts available and is not material. The agreement governing the
Securitization Program contains restrictions and covenants which include limitations on the making of certain
restricted payments, creation of certain liens, and certain corporate acts such as mergers, consolidations and sale of
substantially all assets. The Securitization Program has a minimum borrowing requirement equal to the lesser of
either 80% of our borrowing capacity or 100% of our borrowing base, which is a subset of the trade receivables sold
under this agreement. As of October 2, 2021, our minimum borrowing requirement was $64,000. See Note 24,
Subsequent Events, for additional information related to the Securitization Program.
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