Company Debt at $455M, Interest Rate Reduced to 5%
The company said, "The Company has $455M of debt outstanding under our Credit Agreement with BH Finance. The financing has favorable terms including a 25-year maturity, a fixed annual interest rate of 9.0%, no fixed principal payments, and no financial performance covenants. The $50M private placement of common stock closed in February 2026, which made operative certain amendments to the Credit Agreement with BH Finance, resulting in the fixed annual interest dropping to 5% from 9% for a five-year period. As of and for the period ended December 28, 2025: The principal amount of debt totaled $455M. Cash on the balance sheet totaled $13M. Debt, net of cash on the balance sheet, totaled $443M. Capital expenditures totaled $1M for the quarter. We expect up to $5M of capital expenditures in FY26. We expect cash paid for income taxes to total between $2M and $8M in FY26. We do not expect any pension contributions in the fiscal year. The Company is executing a strategic termination of our fully funded benefit pension plan, eliminating the long-term volatility tied to interest rate movement, mortality assumptions and asset performance, while preserving participant benefits and improving balance sheet flexibility."
