Long-term Debt and Obligations Under Capital Leases

9 Months Ended

Sep. 27, 2011

Long-term Debt and Obligations Under Capital Leases

Long-term Debt and Obligations Under Capital Leases

(3)Long-term Debt and Obligations Under Capital Leases

Long-term debt and obligations under capital leases consisted of the following:

	September 27, 2011		December 28, 2010
Installment loans, due 2011 — 2020	$	1,727	$	1,865
Obligations under capital leases	250		315
Revolver	50,000		50,000
	51,977		52,180
Less current maturities	296		274
	$	51,681	$	51,906

The weighted-average interest rate for installment loans outstanding at September 27, 2011 and December 28, 2010 was 10.57% and 10.58%, respectively.  The debt is secured by certain land and buildings.

On August 12, 2011, we entered into a new $200.0 million five-year revolving credit facility with a syndicate of commercial lenders led by JPMorgan Chase Bank, N.A., PNC Bank, National Association, and Wells Fargo, National Association.  This facility replaces our previous five-year revolving credit facility.  The new facility expires on August 11, 2016.  The terms of the facility require us to pay interest on outstanding borrowings at London Interbank Offered Rate (“ LIBOR”) plus a margin of 0.875% to 1.875%, depending on our leverage ratio, or the Alternate Base Rate, which is the higher of the issuing bank’s prime lending rate, the Federal Funds rate plus 0.50% or the Adjusted Eurodollar Rate for a one month interest period on such day plus 1.0%.  We are also required to pay a commitment fee of 0.150% to 0.350% per year on any unused portion of the facility, depending on our leverage ratio.  The weighted-average interest rate for the revolver at both September 27, 2011 and December 28, 2010 was 4.09% and 3.59%, respectively, including interest rate swaps.  At September 27, 2011, we had $50.0 million outstanding under the credit facility and $146.2 million of availability, net of $3.8 million of outstanding letters of credit.

The lenders’ obligation to extend credit under the facility depends on us maintaining certain financial covenants, including a minimum consolidated fixed charge coverage ratio of 2.00 to 1.00 and a maximum consolidated leverage ratio of 3.00 to 1.00.  The credit facility permits us to incur additional secured or unsecured indebtedness outside the facility, except for the incurrence of secured indebtedness that in the aggregate exceeds 20% of our consolidated tangible net worth or circumstances where the incurrence of secured or unsecured indebtedness would prevent us from complying with our financial covenants.  We were in compliance with all covenants as of September 27, 2011.