Debt, Obligations Under Capital Leases and Deemed Landlord Financing Liabilities

8 Months Ended

Sep. 08, 2020

Debt, Obligations Under Capital Leases and Deemed Landlord Financing Liabilities

Debt and Obligations Under Finance Leases

The Company’s long-term debt, finance lease obligations and other debt at September 8, 2020 and December 31, 2019 consisted of the following (in thousands):


	September 8, 2020		December 31, 2019
Senior Credit Facility, as amended, net of unamortized debt discount of $197 and $231 and deferred financing costs of $888 and $1,038 at September 8, 2020 and December 31, 2019, respectively	$	122,915	$	143,731
Total outstanding indebtedness	122,915		143,731
Obligations under finance leases and other debt	664		1,070
Total debt	123,579		144,801
Less: amounts due within one year	199		220
Total amounts due after one year, net	$	123,380	$	144,581

At September 8, 2020 and December 31, 2019, the Company assessed the amounts recorded under the Senior Credit Facility and determined that such amounts approximated fair value.

During the thirty-six weeks ended September 8, 2020, the Company wrote off a finance lease obligation of $0.3 million related to the modification of a lease from a finance lease to an operating lease.

Senior Credit Facility

On August 4, 2015, the Company refinanced its then existing senior credit facility and entered into a new credit agreement (the “Senior Credit Facility”). The Senior Credit Facility, which was to mature on August 4, 2020, provided for a $250 million revolving credit facility.

In September 2019, the Company refinanced the Senior Credit Facility, pursuant to Amendment No. 4 to the Credit Agreement among Del Taco, as borrower, the Company and its subsidiaries, as guarantors, Bank of America, N.A. as administrative agent and letter of credit issuer, the lenders party thereto, and other parties thereto, which provides for a $250 million five-year senior secured revolving facility. The Senior Credit Facility, as amended, includes a sub limit of $35 million for letters of credit. The Senior Credit Facility, as amended, will mature on September 19, 2024.

The Senior Credit Facility, as amended, contains certain financial covenants, including the maintenance of a consolidated total lease adjusted leverage ratio and a consolidated fixed charge coverage ratio. The Company was in compliance with the financial covenants as of September 8, 2020. Substantially all of the assets of the Company are pledged as collateral under the Senior Credit Facility.

At September 8, 2020, the weighted-average interest rate on the outstanding balance of the Senior Credit Facility, as amended, was 2.16%. At September 8, 2020, the Company had a total of $108.7 million of availability for additional borrowings under the Senior Credit Facility, as amended, as the Company had $124.0 million of outstanding borrowings and $17.3 million of letters of credit outstanding, which reduce availability under the Senior Credit Facility, as amended.