Long-Term Debt and Capital Lease Obligations

3 Months Ended

Mar. 30, 2012

Long-term Debt and Capital Lease Obligations [Abstract]

Long-Term Debt and Capital Lease Obligations

The following is a summary of long-term debt and capital lease obligations (U.S. dollars in millions):



	March 30, 2012			December 30, 2011
Senior secured revolving credit facility (see Credit Facility below)	$	165.5		$	209.8
Various other notes payable	4.1			4.4
Capital lease obligations	1.0			1.3
Total long-term debt and capital lease obligations	170.6			215.5
Less: Current portion	(168.5		)	(2.2		)
Long-term debt and capital lease obligations	$	2.1		$	213.3

Credit Facility

On July 17, 2009, we entered into a senior-secured revolving credit facility (the “Credit Facility”), with Rabobank Nederland, New York Branch, as administrative agent and lead arranger. The following is a summary of the material terms of the Credit Facility and other working capital facilities (U.S. dollars in millions):



	Term	Maturity Date	Interest Rate at March 30, 2012	Borrowing Limit		Available Borrowings
Credit Facility	3.5 years	January 17, 2013	1.86%	$	300.0	$	117.3
Other working capital facilities	Varies	Varies	Varies	23.4		22.2
				$	323.4	$	139.5

10. Long-Term Debt and Capital Lease Obligations (continued)

The Credit Facility includes a swing line facility and a letter of credit facility with a $100 million sub-limit. Borrowings under the Credit Facility bear interest at a spread over the London Interbank Offer Rate (“LIBOR”) that varies with our leverage ratio. The Credit Facility is collateralized directly or indirectly by substantially all of our assets and is guaranteed by certain of our subsidiaries. On March 28, 2011, we amended the Credit Facility by lowering applicable margins over LIBOR or base rate borrowings that vary with our leverage ratio. The Credit Facility has been classified as current in 2012 due to its maturity date. We plan to refinance the Credit Facility within the next year. There are no assurances that increased volatility and uncertainty in the global capital markets will not impair our ability to access these markets on terms that are favorable to us.

The Credit Facility requires us to be in compliance with financial and other covenants, including limitations on capital expenditures, the amount of dividends that can be paid in the future, the amount and types of liens and indebtedness, material asset sales and mergers. As of March 30, 2012, we were in compliance with all of the covenants contained in the Credit Facility. The Credit Facility permits borrowings under the revolving commitment with an interest rate determined based on our leverage ratio and spread over LIBOR. In addition, we pay a fee on unused commitments.

At March 30, 2012, we applied $17.2 million to the letter of credit facility, comprised primarily of certain contingent obligations and other governmental agency guarantees combined with guarantees for purchases of raw materials and equipment. The letter of credit facility includes $1.0 million relating to a debt guarantee for a VIE. We also had $10.2 million in other letters of credit and bank guarantees not included in the letter of credit facility. Refer to Note 5, “Variable Interest Entities”, for further discussion of VIEs.