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Long-Term Debt
9 Months Ended
Oct. 02, 2018
Debt Disclosure [Abstract]  
Long-Term Debt

3.  LONG-TERM DEBT

 

Line of Credit

Our Credit Facility, which matures on November 18, 2021, provides us with revolving loan commitments totaling $250 million, of which $50 million may be used for the issuance of letters of credit. Availability under the Credit Facility is reduced by outstanding letters of credit, which are used to support our self-insurance programs. Our obligations under the Credit Facility are unsecured. As of October 2, 2018, there were borrowings of $95.0 million and letters of credit totaling approximately $14.5 million outstanding under the Credit Facility. Available borrowings under the Credit Facility were $140.5 million as of October 2, 2018. The Credit Facility bears interest at our choice of LIBOR plus a percentage not to exceed 1.75%, or at a rate ranging from Bank of America’s prime rate to 0.75% above Bank of America’s prime rate, based on our level of lease and debt obligations as compared to EBITDA plus lease expenses. The weighted average interest rate during the thirty-nine weeks ended October 2, 2018 was approximately 3.3%.

The Credit Facility contains provisions requiring us to maintain compliance with certain covenants, including a Fixed Charge Coverage Ratio and a Lease Adjusted Leverage Ratio. At October 2, 2018, we were in compliance with these covenants.

 

Interest expense and commitment fees under the Credit Facility for the thirty-nine weeks ended October 2, 2018 and October 3, 2017 were approximately $3.8 million and $3.2 million, respectively. We also capitalized approximately $0.1 million of interest expense related to new restaurant construction during both the thirty-nine weeks ended October 2, 2018 and October 3, 2017.