DEBT

Total debt consisted of the following:



Debt Description	Maturity	Interest Rate at June 30, 2018		June 30, 2018			December 30, 2017
ABL Facility	October 20, 2020	6.50	%	$	26,000		$	80,000
2012 ABS Facility	September 21, 2020	3.09		470,000			580,000
Amended and Restated 2016 Term Loan (net of $6,605 and $9,963 of unamortized deferred financing costs)	June 27, 2023	4.09		2,149,395			2,157,037
2016 Senior Notes (net of $5,752 and $6,229 of unamortized deferred financing costs)	June 15, 2024	5.88		594,248			593,771
Obligations under capital leases	2018–2025	2.36 - 6.18		350,289			336,603
Other debt	2018–2031	5.75 - 9.00		9,373			9,870
Total debt				3,599,305			3,757,281
Current portion of long-term debt				(101,458		)	(109,226		)
Long-term debt				$	3,497,847		$	3,648,055

At June 30, 2018, after considering interest rate swaps, as described in Note 10, Fair Value Measurements, that fixed the interest rate on $1.1 billion of the principal amount of the Amended and Restated 2016 Term Loan, approximately 57% of the Company’s total debt was at a fixed rate and approximately 43% was at a floating rate.

Revolving Credit Agreement—The Amended and Restated ABL Credit Agreement, dated October 20, 2015, as amended, is USF’s asset backed senior secured revolving loan facility (the “ABL Facility”) and provides for loans of up to $1,300 million, with its capacity limited by a borrowing base.

As of June 30, 2018, USF had $26 million of outstanding borrowings, and had issued letters of credit totaling $374 million under the ABL Facility. Outstanding letters of credit included: (1) $78 million issued to secure USF’s obligations with respect to certain facility leases, (2) $295 million issued in favor of certain commercial insurers securing USF’s obligations with respect to its self-insurance program, and (3) $1 million in letters of credit for other obligations. There was available capacity on the ABL Facility of $900 million at June 30, 2018. As of June 30, 2018, USF can periodically elect to pay interest at an alternative base rate (“ABR”), as defined in the ABL Facility, or the London Inter Bank Offered Rate (“LIBOR”) plus applicable interest rate spreads as provided for in the agreement. The interest rate spreads are the lowest provided for in the agreement, based upon USF’s consolidated secured leverage ratio (as defined in the agreement).

Accounts Receivable Financing Program—Under the 2012 ABS Facility, USF sells, on a revolving basis, its eligible receivables to the Receivables Company. See Note 6, Accounts Receivable Financing Program.

The maximum capacity under the 2012 ABS Facility is $800 million. Borrowings under the 2012 ABS Facility were $470 million at June 30, 2018. The Company, at its option, can request additional borrowings up to the maximum commitment, provided sufficient eligible receivables are available as collateral. There was available capacity on the 2012 ABS Facility of $254 million at June 30, 2018 based on eligible receivables as collateral.

Amended and Restated 2016 Term Loan Agreement—The Amended and Restated 2016 Term Loan Credit Agreement, dated June 27, 2016 (as amended, the “Amended and Restated 2016 Term Loan”) provides USF with a $2.1 billion senior secured term loan facility. On June 22, 2018, the Amended and Restated 2016 Term Loan was further amended to lower the interest rate margins under the term loan facility to 2.00% for LIBOR borrowings and 1.00% for ABR borrowings. The table above reflects the June 30, 2018 interest rate on the unhedged portion of the term loan facility. With respect to the portion of the term loan facility subject to interest rate hedging agreements ($1.1 billion as of June 30, 2018), the June 22, 2018 amendment reduced the effective interest rate to 3.71%.

In connection with the June 22, 2018 amendment of the term loan facility, under accounting guidance, the Company applied modification accounting to the majority of the continuing lenders as the terms were not substantially different from the terms that applied to those lenders prior to the amendment. For the remaining lenders, the Company applied debt extinguishment accounting. The Company recorded $0.5 million of third-party costs, and a write-off of $2.6 million of unamortized deferred financing costs, related to the June 22, 2018 amendment, in interest expense. Unamortized deferred financing costs of $7 million at June 30, 2018 were carried forward and will be amortized through June 27, 2023, the maturity date of the term loan facility.

Restrictive Covenants

USF’s credit facilities, loan agreements and indentures contain customary covenants. These include, among other things, covenants that restrict USF’s ability to incur certain additional indebtedness, create or permit liens on assets, pay dividends, or engage in mergers or consolidations. As of June 30, 2018, USF had $859 million of restricted payment capacity under these covenants, and approximately $2,161 million of its net assets were restricted after taking into consideration the net deferred tax assets and intercompany balances that eliminate in consolidation.