Borrowings

Note Payable

We have a note payable with a financial institution which bears interest at 6.23% per annum. The estimated fair value of the note payable approximates its carrying value. The debt is repayable in equal monthly payments of principal and interest of $44,445, with a final payment of unpaid principal and interest in July 2017. Penalty interest of 0.0625% is due on default of payments, and prepayment of amounts owed are subject to a prepayment fee calculated as the greater of a) 1% of the principal being repaid and b) the present value of the future principal and interest payments less the principal repaid. Interest expense for fiscal 2016, 2015 and 2014 was $0.3 million, $0.3 million and $0.3 million, respectively, and was recorded in other income (expense), net of the consolidated statements of operations.

Future principal and interest payments for our note payable are as follows (in thousands):



Fiscal Years
2017	$	533
2018	4,220
	$	4,753

Credit Facility

Our original $40.0 million credit facility with SVB consisted of a revolving loan facility which included a letter of credit sub facility of up to $10.0 million. In fiscal 2014, the credit facility was amended to reduce the amount to $25.0 million and, in fiscal 2016, we extended the expiration date to November 2016. The credit facility includes an option to request an increase of the available funds to $50.0 million and is secured by a security interest on substantially all of our assets and contains restrictive covenants. Upon drawing the credit facility, the financial covenants will require us to maintain a minimum adjusted EBITDA, as defined in the credit facility, and a minimum adjusted quick ratio. The credit facility also sets forth specified events of default. No amounts had been drawn under the credit facility through February 29, 2016.