On July 13, 2018, the Company refinanced a credit agreement with Bank of America, N.A., initially entered into on December 11, 2014 (the “2014 Revolver”), pursuant to a credit agreement (the “2018 Credit Agreement”) among EPL, as borrower, and the Company and Intermediate, as guarantors, Bank of America, N.A., as administrative agent, swingline lender, and letter of credit issuer, the lenders party thereto, and the other parties thereto, which provides for a $150.0 million five-year senior secured revolving credit facility (the “2018 Revolver”). The 2018 Revolver includes a sub limit of $15.0 million for letters of credit and a sub limit of $15.0 million for swingline loans. The 2018 Revolver and 2018 Credit Agreement will mature on July 13, 2023. The obligations under the 2018 Credit Agreement and related loan documents are guaranteed by the Company and Intermediate. The obligations of the Company, EPL and Intermediate under the 2018 Credit Agreement and related loan documents are secured by a first priority lien on substantially all of their respective assets.

Borrowings under the 2018 Credit Agreement (other than any swingline loans) bear interest, at the borrower’s option, at rates based upon either LIBOR or a base rate, plus, for each rate, a margin determined in accordance with a lease-adjusted consolidated leverage ratio-based pricing grid. The base rate is calculated as the highest of (a) the federal funds rate plus 0.50%, (b) the published Bank of America prime rate, or (c) LIBOR plus 1.00%. For LIBOR loans, the margin is in the range of 1.25% to 2.25%, and for base rate loans the margin is in a range of 0.25% to 1.25%. Borrowings under the 2018 Revolver may be repaid and reborrowed. The interest rate range was 3.65% to 3.90% and 3.65% to 6.00% for the thirteen and thirty-nine weeks ended September 25, 2019, respectively, and 3.57% to 3.84% and 3.30% to 3.84% for the thirteen and thirty-nine weeks ended September 26, 2018, respectively.

The 2018 Credit Agreement contains certain financial covenants. The Company was in compliance with the financial covenants as of September 25, 2019.

At September 25, 2019, $8.5 million of letters of credit and $101.0 million in borrowings under the 2018 Revolver were outstanding. The amount available under the 2018 Revolver was $40.5 million at September 25, 2019.

Maturities

During the thirteen and thirty-nine weeks ended September 25, 2019, the Company borrowed $16.0 million and $27.0 million, respectively, net of pay downs of $15.0 million during the thirty-nine week period, on the Company’s 2018 Revolver, primarily to fund settlement payments. See Note 7 for further details regarding the settlement payments. During the thirteen and thirty-nine weeks ended September 26, 2018, the Company elected to pay down $10.0 million and $23.0 million, net of new borrowings of $6.0 million during the thirty-nine week period, of outstanding borrowings on the Company’s 2014 Revolver, respectively. There are no required principal payments prior to maturity for the 2018 Revolver.

Interest Rate Swap

During the thirteen and thirty-nine weeks ended September 25, 2019, the Company entered into a variable-to-fixed interest rate swap agreement with a notional amount of $40.0 million that matures in June 2023. The objective of the interest rate swap is to reduce its exposure to interest rate risk for a portion of its variable-rate interest payments on its borrowings under the 2018 Revolver. Under the terms of the swap agreement, the variable LIBOR-based component of interest payments are converted to a fixed rate of 2.81%. The interest rate swap is designated as a cash flow hedge, as the changes in the future cash flows of the swap are expected to offset changes in expected future interest payments on the related variable-rate debt, in accordance with Accounting Standards Committee ("ASC") 815. There were no interest rate swaps outstanding as of December 26, 2018.

The changes in the fair value of the interest rate swap are not included in earnings, but are included in other comprehensive income (“OCI”). These changes in fair value are subsequently reclassified into net earnings as a component of interest expense as the hedged interest payments are made on the variable rate borrowings.

For the thirteen and thirty-nine weeks ended September 25, 2019, the swap was a highly effective cash flow hedge.

As of September 25, 2019, the estimated net gain included in AOCI related to the Company's cash flow hedge that will be reclassified into earnings in the next 12 months is $0.3 million, based on current LIBOR interest rates.

The following table shows the financial statement line item and amount of the Company's cash flow hedge accounting on the condensed consolidated balance sheet (in thousands):



	September 25, 2019
	Notional	Fair value
Other Assets - Interest rate swap	40,000	171

The following table summarizes the effect of the Company's cash flow hedge accounting on the condensed consolidated statements of income (in thousands):



	Thirteen Weeks Ended					Thirty-Nine Weeks Ended
	September 25, 2019			September 26, 2018		September 25, 2019			September 26, 2018
Interest expense on hedged portion of debt	122			—		122			—
Interest income on interest rate swap	(29		)	—		(29		)	—
Interest expense on debt and derivatives, net	$	93		$	—	$	93		$	—

The following table summarizes the effect of the Company's cash flow hedge accounting on AOCI for the thirteen and thirty-nine weeks ended September 25, 2019 and September 26, 2018 (in thousands):



	Thirteen Weeks Ended							Thirty-Nine Weeks Ended
	Gain Recognized in OCI			(Gain) Reclassified from AOCI into Interest expense				Gain Recognized in OCI			(Gain) Reclassified from AOCI into Interest expense
	September 25, 2019		September 26, 2018	September 25, 2019			September 26, 2018	September 25, 2019		September 26, 2018	September 25, 2019			September 26, 2018
Interest rate swap	$	171	—	$	(29	)	—	$	171	—	$	(29	)	—

See Note 1 for the fair value of our derivative asset.