Debt

The Company’s short- and long-term debt as of March 30, 2019 and September 29, 2018 was as follows:



	March 30, 2019					September 29, 2018
	Rate		Balance			Rate		Balance
(dollars in thousands)
J.P. Morgan Chase Bank, N.A Secured Term Loan (the “Term Loan”) ⁽¹⁾	5.1	%	$	40,000		4.8	%	$	40,000
Unamortized debt issuance costs ⁽²⁾			(199		)			(236		)
Total indebtedness			$	39,801				$	39,764
Less short-term portion			(10,000		)			(6,667		)
Long-term debt			$	29,801				$	33,097


(1)	Bears interest at a variable rate equal to an adjusted LIBOR plus 2.25% and is payable quarterly. Due in October 2021, with quarterly principal payments beginning in July 2019.


(2)	Debt issuance costs are recorded as a debt discount and recorded as interest expense over the term of the agreement.

The Company’s Secured Credit Facility with J.P. Morgan Chase Bank, N.A. (the “Credit Facility”) and the Term Loan require the Company to maintain a consolidated fixed charge ratio of at least 1.0, restrict distribution of dividends unless certain conditions are met, such as having a fixed charge ratio of at least 1.15, and require financial statement reporting and delivery of borrowing base certificates. As of March 30, 2019 and September 29, 2018, the Company was in compliance with all financial covenants.

The Company’s obligations under the Credit Facility and the Term Loan are collateralized by eligible inventory and accounts receivable of the Company as well as the Company’s intellectual property including patents and trademarks. As of both March 30, 2019 and September 29, 2018, the Company did not have any outstanding borrowings and $4.5 million in undrawn letters of credit that reduce the availability under the Credit Facility. As of March 30, 2019 and September 29, 2018, the Company had $39.8 million outstanding on the Term Loan.