Long-term Debt, Net

12 Months Ended

Dec. 29, 2019

Following is a summary of outstanding long-term debt, as of the periods indicated:



	DECEMBER 29, 2019					DECEMBER 30, 2018
(dollars in thousands)	OUTSTANDING BALANCE			INTEREST RATE		OUTSTANDING BALANCE			INTEREST RATE
Senior Secured Credit Facility:
Term loan A (1)	$	450,000		3.40	%	$	475,000		4.14	%
Revolving credit facility (1) (2)	599,000			3.44	%	599,500			4.17	%
Total Senior Secured Credit Facility	1,049,000					1,074,500
Finance lease liabilities	2,308					3,297
Financing obligations	—					19,562			7.58% to 7.82%
Other	50			2.18	%	918			0.00% to 2.18%
Less: unamortized debt discount and issuance costs	(2,654		)			(3,502		)
Total debt, net	1,048,704					1,094,775
Less: current portion of long-term debt	(26,411		)			(27,190		)
Long-term debt, net	$	1,022,293				$	1,067,585

________________


(1)	Interest rate represents the weighted-average interest rate for the respective periods.


(2)	Subsequent to December 29, 2019, the Company made payments of $65.0 million, net of borrowings, on its revolving credit facility.

Bloomin’ Brands, Inc. is a holding company and conducts its operations through its subsidiaries, certain of which have incurred indebtedness as described below.

Credit Agreement - On November 30, 2017, the Company and OSI, as co-borrowers, entered into a credit agreement (the “Credit Agreement”) with a syndicate of institutional lenders, providing for senior secured financing of up to

$1.5 billion consisting of a $500.0 million Term loan A and a $1.0 billion revolving credit facility, including a letter of credit and swing line loan sub-facilities (the “Senior Secured Credit Facility”). The Senior Secured Credit Facility matures on November 30, 2022.

The Company may elect an interest rate for the Credit Agreement at each reset period based on the Alternate Base Rate or the Eurocurrency Rate. The Alternate Base Rate option is the highest of: (i) the prime rate of Wells Fargo Bank, National Association, (ii) the federal funds effective rate plus 0.5 of 1.0% or (iii) the Eurocurrency rate with a one-month interest period plus 1.0% (the “Base Rate”). The Eurocurrency Rate option is the seven, 30, 60, 90 or 180-day Eurocurrency rate (“Eurocurrency Rate”). The interest rates are as follows:



	BASE RATE ELECTION	EUROCURRENCY RATE ELECTION
Term loan A and revolving credit facility	50 to 100 basis points over Base Rate	150 to 200 basis points over the Eurocurrency Rate

Fees on letters of credit and the daily unused availability under the revolving credit facility as of December 29, 2019 were 1.88% and 0.30%, respectively. As of December 29, 2019, $20.2 million of the revolving credit facility was committed for the issuance of letters of credit and not available for borrowing.

The Senior Secured Credit Facility is guaranteed by each of the Company’s current and future domestic subsidiaries and is secured by substantially all now owned or later acquired assets of the Company and OSI, including the Company’s domestic subsidiaries.

Debt Covenants and Other Restrictions - Borrowings under the Company’s debt agreements are subject to various covenants that limit its ability to: incur additional indebtedness; make significant payments; sell assets; pay dividends and other restricted payments; acquire certain assets; effect mergers and similar transactions; and effect certain other transactions with affiliates. The Senior Secured Credit Facility has a financial covenant to maintain a specified quarterly Total Net Leverage Ratio (“TNLR”). TNLR is the ratio of Consolidated Total Debt (Current portion of long-term debt and Long-term debt, net of cash) to Consolidated EBITDA (earnings before interest, taxes, depreciation and amortization and certain other adjustments as defined in the Credit Agreement). The TNLR may not exceed 4.50 to 1.00. The Company’s TNLR as of December 29, 2019 does not limit the Company’s ability to draw on its revolving credit facility.

The Senior Secured Credit Facility permits regular quarterly dividend payments, subject to certain restrictions.

As of December 29, 2019 and December 30, 2018, the Company was in compliance with its debt covenants.

Maturities - Following is a summary of principal payments of the Company’s total consolidated debt outstanding:



(dollars in thousands)	DECEMBER 29, 2019
2020	$	26,462
2021	38,399
2022	984,030
2023	—
2024	—
Thereafter	—
Total payments	$	1,048,891
Less: finance lease interest	(187		)
Total principal payments	$	1,048,704

The following is a summary of required amortization payments for the Term loan A (dollars in thousands):



SCHEDULED QUARTERLY PAYMENT DATES	TERM LOAN A
March 29, 2020 through December 27, 2020	$	6,250
March 28, 2021 through December 26, 2021	$	9,375
March 27, 2022 through September 25, 2022	$	12,500

The Senior Secured Credit Facility contains mandatory prepayment requirements for Term loan A. The Company is required to prepay outstanding amounts under these loans with 50% of its annual excess cash flow, as defined in the Credit Agreement. The amount of outstanding loans required to be prepaid in accordance with the debt covenants may vary based on the Company’s leverage ratio and year end results.