Utz Brands, Inc.UTZ
Utz Brands, Inc. Debt Disclosure
LONG-TERM DEBT
Revolving Credit Facility
The Company has an asset based revolving credit facility (as amended, the “ABL facility”) which was amended in July 2023, to increase the credit limit to $225.0 million and extended the maturity to the earlier of July 20, 2028, or 91 days prior to the maturity of the Term Loan B (as defined below). On April 17, 2024, the Company further amended its ABL facility to reduce the rate from SOFR plus the applicable rate ranging from 1.50%-2.00% plus a credit spread adjustment to SOFR plus the applicable rate ranging from 1.50%-2.00%, as well as certain other changes. Other material terms of the ABL facility, including maturity date, remained unchanged.
Availability under the ABL facility is based on monthly accounts receivable and inventory borrowing base certification, which is net of outstanding letters of credit and amounts borrowed. As of December 28, 2025 and December 29, 2024, $119.7 million and $158.7 million, respectively, was available for borrowing, net of letters of credit. The ABL facility is also subject to unused line fees (0.5% at both December 28, 2025 and December 29, 2024) and other fees and expenses.
Standby letters of credit in the amount of $10.3 million were issued as both of December 28, 2025 and December 29, 2024. The standby letters of credit are primarily issued for insurance purposes.
Term Loans
The Company has a credit agreement with a syndicate of banks, led by Bank of America, N.A. (“Term Loan B”) which had an original outstanding balance of $795.0 million maturing on January 20, 2028. In March 2024, in connection with the Good Health and R.W. Garcia Sale as described in Note 2. Divestitures and Note 5. Property, Plant and Equipment, Net, the Company made a $141.0 million accelerated payment on its Term Loan B. On April 17, 2024, the Company amended its Term Loan B to refinance in full all of the $630.3 million outstanding term loan and reduce the interest rate from SOFR plus the applicable rate of 3.00% plus a credit spread adjustment to SOFR plus the applicable rate of 2.75%, as well as to make certain other changes. The Company recorded a loss on debt extinguishment of $1.3 million related to the refinancing of its Term Loan B in its Consolidated Statements of Operations and Comprehensive Income (Loss) for the fiscal year ended December 29, 2024. On January 29, 2025, the Company further amended its Term Loan B to refinance in full all of the $630.3 million outstanding term loans thereunder, reduce the interest rate from the Secured Overnight Financing Rate (“SOFR”) plus the applicable rate of 2.75% to SOFR plus the applicable rate of 2.50% and extend the maturity date from January 20, 2028 to January 29, 2032, as well as to make certain other changes. Other material terms of the Term Loan B remain unchanged. The Company recorded a loss on debt extinguishment of $0.5 million related to the refinancing of its Term Loan B in its Consolidated Statements of Operations and Comprehensive Income (Loss) for the fiscal year ended December 28, 2025. The weighted average interest rate on the Term Loan B debt, including the impact of the interest rate swap (see Note 11. Derivative Financial Instruments and Purchase Commitments), for the fiscal year ended December 28, 2025 and the fiscal year ended December 29, 2024 was 4.88% and 5.14%, respectively.
On October 12, 2022, the Company entered into a loan agreement (the “Real Estate Term Loan”) with City National Bank which was secured by a majority of the Company's real estate assets. The Real Estate Term Loan has a ten-year maturity and amortizes approximately $3.5 million in principal annually, with a balloon payment due at maturity. The Real Estate Term Loan contains a single financial maintenance covenant consisting of a fixed charge coverage ratio that is tested quarterly only during a covenant trigger period consistent with the existing ABL facility. Concurrent with the closing of the Real Estate Term Loan, Utz Quality Foods, LLC entered into an interest rate swap transaction to fix the effective interest rate at approximately 5.93%, as discussed in further detail within Note 11. Derivative Financial Instruments and Purchase Commitments. In September 2023, the Company made an additional $4.4 million payment on its Real Estate Term Loan using net proceeds from the sale of land to a third-party, as discussed within Note 5. Property, Plant and Equipment, Net, as well as cash on hand. In February 2024, in connection with the Good Health and R.W. Garcia Sale as described in Note 2. Divestitures, the Company made an additional $8.5 million payment on its Real Estate Term Loan. In April 2024, in connection with the Manufacturing Facilities Sale as described in Note 2. Divestitures, the Company made an additional payment of $9.2 million on its Real Estate Term Loan.
The Term Loan B and the ABL facility are collateralized by substantially all of the assets and liabilities of UBH and its subsidiaries excluding the real estate assets secured by the Real Estate Term Loan, including equity interests in certain of UBH’s subsidiaries. The credit agreements contain certain affirmative and negative covenants as to operations and the financial condition of UBH and its subsidiaries. UBH and its subsidiaries were in compliance with its financial covenants as of December 28, 2025.
Term debt and revolving credit facilities consisted of the following:
Debt (in millions) | Original Principal Balance | Maturity Date | As of December 28, 2025 | As of December 29, 2024 | ||||||||||||||||||||||
| Term Loan B | $ | 795.0 | January-32 | $ | 630.3 | $ | 630.3 | |||||||||||||||||||
| Real Estate Term Loan | 88.1 | October-32 | 57.0 | 59.6 | ||||||||||||||||||||||
Equipment loans(1) | 211.1 | 167.0 | 83.5 | |||||||||||||||||||||||
Asset based lending (“ABL”) facility(2) | July-28 | 0.2 | 0.2 | |||||||||||||||||||||||
| Net impact of debt issuance costs and original issue discount | (4.9) | (5.0) | ||||||||||||||||||||||||
| Total long-term debt | 849.6 | 768.6 | ||||||||||||||||||||||||
| Less: current portion | (31.4) | (16.1) | ||||||||||||||||||||||||
| Long term portion of term debt and financing obligations | $ | 818.2 | $ | 752.5 | ||||||||||||||||||||||
(1) Equipment loans have varying maturities from June 2026 to November 2030. The Company has made the following draws upon these agreements: $13.1 million in the fiscal year ended December 31, 2023, $39.1 million in the fiscal year ended December 29, 2024 and $104.5 million in the fiscal year ended December 28, 2025. These draws bear interest ranging from 3.26% through 7.56%.
(2) The Company generally utilizes the prime rate for amounts that the Company expects to pay down within 30 days, the interest rate on the ABL facility as of December 28, 2025 and December 29, 2024, was 7.50% and 8.00%, respectively, under the prime rate. Balances that are expected to be carried longer than 30 days, the interest rate on the ABL facility as of December 28, 2025 was 5.76%.
As of December 28, 2025, the minimum debt repayments under term debt and financing obligations, excluding unscheduled equipment loans of $49.9 million, consisted of the following:
| (in millions) | ||||||||
| 2026 | $ | 31.4 | ||||||
| 2027 | 30.4 | |||||||
| 2028 | 28.2 | |||||||
| 2029 | 24.8 | |||||||
| 2030 | 15.1 | |||||||
| Thereafter | 674.7 | |||||||
| Total | $ | 804.6 | ||||||
The Term Loan B, the ABL Facility, and the equipment loans are debt of UBH and its’ subsidiaries. There are no material differences between the financial statements of UBI and its consolidated subsidiaries and the financial statements of UBH and its consolidated subsidiaries, except for the warrant liability and associated gain on remeasurement of warrant liability as described in Note 19. Warrants, the TRA described in Note 16. Income Taxes and accrued dividends to stockholders which flow out of UBH.
Other Notes Payable and Capital Leases
Amounts outstanding under other notes payable consisted of the following:
| (in millions) | As of December 28, 2025 | As of December 29, 2024 | ||||||||||||
| Note payable – IO notes | $ | 13.0 | $ | 12.1 | ||||||||||
Finance lease obligations(1) | 7.7 | 9.7 | ||||||||||||
| Other | — | 0.1 | ||||||||||||
| Total notes payable | 20.7 | 21.9 | ||||||||||||
| Less: current portion | (6.5) | (6.9) | ||||||||||||
Long term portion of other notes payable | $ | 14.2 | $ | 15.0 | ||||||||||
(1) See Note 17. Leases for further discussion on our finance lease obligations.
During the fiscal year ended December 31, 2023, the Company sold an additional $5.2 million of notes receivable from IOs for proceeds of $5.4 million to a financial institution. During the fiscal year ended December 29, 2024, the Company sold an additional $4.6 million of notes receivable from IOs for proceeds of $4.9 million to a financial institution. During the fiscal year ended December 28, 2025, the Company sold an additional $5.8 million of notes receivable from IOs for proceeds of $6.1 million to a financial institution. Due to the structure of these transactions, they did not qualify for sale accounting treatment and the Company has recorded the notes payable obligation owed by the IOs to the financial institution on its books; the corresponding notes receivable also remained on the Company’s books. The Company services the loans for the financial institution by collecting principal and interest from the IOs and passing it through to the institution. The underlying notes have various maturity dates through October 2035. The Company partially guarantees the outstanding loans, as discussed in further detail within Note 14. Contingencies. These loans are collateralized by the routes for which the loans are made. Accordingly, the Company has the ability to recover substantially all of the outstanding loan value upon default.
Interest Expense
Interest expense consisted of the following:
| (in millions) | For the Fiscal Year Ended December 28, 2025 | For the Fiscal Year Ended December 29, 2024 | For the Fiscal Year Ended December 31, 2023 | |||||||||||||||||
| Company’s long-term debt | $ | 40.8 | $ | 40.6 | $ | 57.9 | ||||||||||||||
| Amortization of deferred financing fees | 1.4 | 3.2 | 1.6 | |||||||||||||||||
| IO loans | 0.9 | 1.1 | 1.1 | |||||||||||||||||
| Total interest | $ | 43.1 | $ | 44.9 | $ | 60.6 | ||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 12, 2026 | Showing above |
| 2024 | Feb 20, 2025 | |
| 2023 | Mar 2, 2023 | |
| 2022 | Mar 3, 2022 | |
| 2021 | Mar 18, 2021 | |
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.