Quarterly report pursuant to Section 13 or 15(d)

Long Term Debt

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Long Term Debt
9 Months Ended
Sep. 24, 2022
Debt Disclosure [Abstract]  
Long Term Debt
The following table summarizes the Company’s debt:
September 24, 2022 December 25, 2021
Revolving loans $ 100,000  $ 93,000 
Senior term loan, due 2028 844,618  851,000 
Finance leases 4,826  1,782 
Other financing 1
1,809  — 
951,253  945,782 
Unamortized discount on Senior term loan (5,246) (5,948)
Current portion of long-term debt and financing lease liabilities (12,805) (11,404)
Deferred finance fees (19,387) (21,899)
Total long-term debt, net $ 913,815  $ 906,531 
(1)The Company entered into an agreement to finance warehouse fixtures and equipment. The agreement has an interest rate of 3.94% and will be repaid through August 31, 2027.

As of September 24, 2022, the ABL Revolver had an outstanding amount of $100,000 and outstanding letters of credit of $32,790. The Company has $195,350 of available borrowings under the revolving credit facility as a source of liquidity as of September 24, 2022 based on the customary asset-backed loan borrowing base and availability provisions.
On July 29, 2022 the Company amended the asset-based revolving credit agreement (the “ABL Revolver") with Barclays Bank PLC, as administrative agent, and the lenders and other parties thereto (the “ABL Credit Agreement”), increasing the aggregate commitments thereunder to $375,000 and extended the maturity. Portions of the ABL Agreement are separately available for borrowing by the Company's United States subsidiary and Canadian subsidiary for $325,000 and $50,000, respectively. The interest rate for the ABL Revolver is, at the discretion of the Company, adjusted SOFR (or a Canadian banker’s acceptance rate in the case of Canadian Dollar loans) plus a margin varying from 1.25% to 1.75% per annum based on availability or an alternate base rate (or a Canadian prime rate or alternate base rate in the case of Canadian Dollar loans) plus a margin varying from 0.25% to 0.75% per annum based on availability. The stated maturity date of the revolving credit commitments under the ABL Credit Agreement is July 29, 2027. The loans and other amounts outstanding under the ABL Credit Agreement and related documents are guaranteed by The Hillman Companies, Inc., a wholly‑owned subsidiary of the Company, and, subject to certain exceptions, the Borrower’s wholly-owned domestic subsidiaries and are secured by substantially all of the Borrower’s and the guarantors’ assets plus, solely in the case of the Canadian Borrower, its and its wholly-owned Canadian subsidiary’s assets, which has guaranteed by the Canadian portion under the ABL Credit Agreement.
2021 Refinancing
In connection with the Closing as described in Note 1 - Basis of Presentation, the Company entered into a new credit agreement (the “Term Credit Agreement”), which provided for a new funded term loan facility of $835.0 million and a delayed draw term loan facility of $200.0 million (of which $16.0 million was drawn). The Company also entered into an amendment to the existing Asset-Based Revolving Credit Agreement (the “ABL Amendment”) extending the maturity and conformed certain provisions to the Term Credit Agreement. The proceeds of the funded term loans under the Term Credit Agreement and revolving credit loans under the ABL Credit Agreement were used, together with other available cash, to (1) refinance in full all outstanding term loans and to terminate all outstanding commitments under the credit agreement, dated as of May 31, 2018 ("2018 Term Loan" including the OZCO Amendment), (2) refinance outstanding revolving credit loans, and (3) redeem in full the senior notes due July 15, 2022 (the “6.375% Senior Notes”). Additionally, the Company fully redeemed the 11.6% Junior Subordinated Debentures.

In connection with the Term Credit Agreement, the Company recorded $23,432 in deferred financing fees and $6,380 in discount which are recorded as long term debt on the Consolidated Balance Sheet. In connection with the ABL Amendment, the Company recorded $3,035 in deferred financing fees which are recorded as other non-current assets on the Consolidated Balance Sheet.

Additionally, the Company recorded a loss (gain) on extinguishment of debt for each debt instrument included in the refinancing as detailed below. The Company amended its interest rate swaps in connection with the refinancing, see Note 16 - Derivatives and Hedging for additional details.
Loss (gain) on extinguishment of debt
Term Credit Agreement $ 20,243 
ABL Revolver 288 
6.375% Senior Notes, due 2022
1,083 
11.6% Junior Subordinated Debentures
(13,603)
Interest rate swaps 59 
Total $ 8,070 

Additional information with respect to the fair value of the Company’s fixed rate Senior Notes and Junior Subordinated Debentures is included in Note 17 - Fair Value Measurements.