Quarterly report pursuant to Section 13 or 15(d)

Long Term Debt

Long Term Debt
6 Months Ended
Jul. 01, 2023
Debt Disclosure [Abstract]  
Long Term Debt
The following table summarizes the Company’s debt:
July 1, 2023 December 31, 2022
Revolving loans $ 8,000  $ 72,000 
Senior Term loan, due 2028 836,108  840,363 
Finance lease & other obligations 7,356  6,406 
851,464  918,769 
Unamortized discount on Senior Term loan (4,549) (5,012)
Current portion of long-term debt and finance leases (11,240) (10,570)
Deferred financing fees (16,877) (18,551)
Total long-term debt, net $ 818,798  $ 884,636 
As of July 1, 2023, the ABL Revolver had an outstanding amount of $8,000 and outstanding letters of credit of $35,890. The Company has $283,069 of available borrowings under the revolving credit facility as a source of liquidity as of July 1, 2023 based on the customary asset-backed loan borrowing base and availability provisions.
Conversion of Debt from LIBOR Interest Rate to SOFR Interest Rate
The Company's debt instruments are subject to interest rate adjustments that were initially based on the London Interbank Offered Rate ("LIBOR"). However, due to the discontinuation of LIBOR as a benchmark rate and the industry's transition to the Secured Overnight Financing Rate (SOFR), the Company has undertaken the necessary steps to convert its debt from LIBOR interest rate to SOFR interest rate. On June 30, 2023, the Company amended the term loan credit agreement to change the benchmark rate from LIBOR to SOFR, and had previously amended the ABL revolver to do the same on July 29, 2022.
The interest rate for the term loan is, at the discretion of the Company, (i) term SOFR plus a margin varying from 2.50% to 2.75% per annum based on leverage, plus a credit spread adjustment varying between 0.11448% to 0.42826%, depending on the SOFR tenor selected; or (ii) an alternate base rate plus a margin varying from 1.50% to 1.75% per annum based on leverage.