Debt
As of March 30, 2025, we had in place a second amended and restated credit agreement, as amended (the "Existing Credit Agreement") with U.S. Bank National Association and other lenders which provided us with secured revolving credit facilities (the "Existing Revolving Loan Facility”) totaling $250 million. The Existing Revolving Loan Facility included a $10 million letter of credit subfacility and a $25 million swingline subfacility. The Existing Revolving Loan Facility was scheduled to mature on April 30, 2027. The Existing Revolving Loan Facility was secured by substantially all of our personal property assets and those of our subsidiaries.
At March 30, 2025, the effective interest rate on our borrowings was 4.3%. In addition to paying interest on the outstanding principal under the Revolving Loan Facility, we were required to pay a commitment fee on the unutilized commitments thereunder. The commitment fee was between 0.15% and 0.25%, depending on our leverage ratio.
Unamortized debt issuance costs of $0.3 million paid in connection with the Existing Credit Facility are reflected as a reduction of debt and are amortized as interest expense over the term of the Existing Revolving Loan Facility.
The Existing Credit Agreement required us to maintain (a) a minimum fixed charge coverage ratio of 1.15 to 1.00 and (b) a maximum total cash flow leverage ratio of 3.0 to 1.0. The Credit Agreement also contained other customary affirmative and negative covenants, including covenants that restricted our ability to incur additional indebtedness, dispose of significant assets, make certain investments, including any acquisitions other than permitted acquisitions, make certain payments, enter into sale and leaseback transactions, grant liens on our assets or enter into rate management transactions, subject to certain limitations. We were permitted to make distributions, pay dividends and repurchase shares so long as no default or event of default existed or would exist as a result thereof. As of March 30, 2025, we were in compliance with all required covenants.
Debt at March 30, 2025 and March 31, 2024 consisted of the following: | | | | | | | | | | | | | | |
| (In thousands) | | 2025 | | 2024 |
| Senior secured revolving loan | | $ | 149,000 | | | $ | 99,000 | |
| Less: unamortized debt issuance costs | | (181) | | | (269) | |
| Total debt, net of debt issuance costs | | 148,819 | | | 98,731 | |
| Less: current portion of long-term debt, net of current unamortized debt issuance costs | | (9,913) | | | (9,913) | |
| Total long-term debt | | $ | 138,906 | | | $ | 88,818 | |
The Existing Credit Agreement was further amended after the end of the fiscal year. See Note 16 to our consolidated financial statements for further information.
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.