Quarterly report pursuant to Section 13 or 15(d)

Credit Facilities

v3.21.2
Credit Facilities
9 Months Ended
Oct. 02, 2021
Debt Disclosure [Abstract]  
CREDIT FACILITIES

9. CREDIT FACILITIES

Total long-term non-revolving debt consists of the following:

 

Maturity Date

 

October 2, 2021

 

 

January 2, 2021

 

Long-term non-revolving debt:

 

 

 

 

 

 

 

Term loan with PNC Bank

Oct 2025

 

$

192,500

 

 

$

200,000

 

Term loan with Intesa Sanpaolo S.p.A

Dec 2021

 

 

1,456

 

 

 

6,106

 

Term loan with Citibank

Nov 2023

 

 

325

 

 

 

400

 

Other long-term debt

Various

 

 

136

 

 

 

264

 

Total long-term non-revolving debt

 

 

 

194,417

 

 

 

206,770

 

Less: current portion of long-term non-revolving debt

 

 

 

15,368

 

 

 

16,229

 

Less: unamortized debt issuance costs

 

 

 

515

 

 

 

609

 

Total long-term non-revolving debt, net

 

 

$

178,534

 

 

$

189,932

 

Information on the Company’s revolving credit facilities is as follows:

 

 

 

Balance

 

 

Available Credit

 

 

Maturity Date

 

October 2, 2021

 

 

January 2, 2021

 

 

October 2, 2021

 

 

January 2, 2021

 

Revolving line of credit with PNC Bank

Oct 2025

 

$

276,326

 

 

$

255,909

 

 

$

120,658

 

 

$

144,045

 

Revolving line of credit with Citibank

Sept 2022

 

 

1,021

 

 

 

315

 

 

 

221

 

 

 

1,982

 

 

 

 

$

277,347

 

 

$

256,224

 

 

$

120,879

 

 

$

146,027

 

 

 

Future maturities of total debt are as follows:

Year:

 

 

2021 Remaining

$

4,402

 

2022

 

15,951

 

2023

 

15,085

 

2024

 

20,000

 

2025

 

416,326

 

Total

$

471,764

 

 

Term Loan and Line of Credit with PNC Bank

The Company has a credit agreement that includes a revolving line of credit and term loan credit facility with PNC Bank, National Association, as administrative agent, and the lenders party thereto. The revolving line of credit allows for borrowings up to an aggregate maximum principal amount of $400,000.

The Company has exchanged a portion of the USD denominated borrowings on the line of credit for 90,000 in order to hedge currency exposure in foreign operations. The borrowings have been designated as a net investment hedge, see additional information in Note 8.

The effective interest rate on the credit agreement at October 2, 2021 was 2.09%. Interest expense recognized on the credit agreement during the nine months ended October 2, 2021 and September 26, 2020, totaled $9,631 and $5,863, respectively. As of the date of this filing, the Company was in compliance with all debt covenants related to the credit agreement.

Term Loan with Intesa Sanpaolo S.p.A.

The Company has an agreement with Intesa Sanpaolo S.p.A. that provides an unsecured term loan of €5,000. The facility bears interest at 1.25%. Repayment of the facility began in January 2021 and is due in 12 monthly installments. The loan bears a guarantee from SACE S.p.A. – the Italian export public credit agency operating in the insurance and financial services sectors – pursuant to the Law Decree No. 23 of April 8, 2020, converted (with amendments) into Law No. 40 of June 5, 2020.

Term Loan and Line of Credit with Citibank

The Company has an uncommitted fixed asset facility agreement (the “Fixed Asset Facility”) and short-term revolving facility agreement (the “Working Capital Facility”) with Citibank (China) Co., Ltd. Shanghai Branch, as lender.

Under the Fixed Asset Facility, the Company may, from time-to-time, borrow amounts on a secured basis up to a total of RMB 50,000. The proceeds of such loans may be used for purchases of certain equipment. Outstanding borrowings under the Fixed Asset Facility accrue interest at a rate equal to the National Interbank Funding Center 1-year loan prime rate plus 1.50%, to be repaid on a specified schedule. Currently drawn funds have a final payment due date of November 2023.

Under the Working Capital Facility, the Company may, from time-to-time, borrow amounts on an unsecured revolving facility up to a total of RMB 15,000. Proceeds may only be used for expenditures related to production at the Company’s facility located in Kunshan City, China. Outstanding borrowings under the Working Capital Facility accrue interest at a rate equal to the National Interbank Funding Center 1-year loan prime rate plus 0.50%. All outstanding balances will be due in September 2022.

As of the date of this filing, the Company was in compliance with all debt covenants related to the Fixed Asset Facility and Working Capital Facility.