NOTE 10 DEBT AND LINES OF CREDIT

Total short-term debt was as follows:

(In thousands)	September 28,		December 29,
	2013		2012

Japanese revolving lines of credit	$	712	$	5,231
Japanese receivables financing facilities	1,161		415
Current portion of long-term debt	3,741		27,339
Total short-term borrowings	$	5,614	$	32,985

Total long-term debt was as follows:

(In thousands)	September 28,		December 29,
	2013		2012

U.S. term loan due October 2016	$	-	$	171,125
U.S. revolving line of credit expiring July 2018	101,000		-
Israeli loans due through October 2015	2,480		3,591
Japanese private placement bonds due June 2014	2,036		2,325
Japanese loans due through June 2016	294		1,056
Total long-term debt	105,810		178,097
Current portion of long-term debt	3,741		27,339
Total long-term debt, less current portion	$	102,069	$	150,758

On July 18, 2013, the Company entered into a new credit agreement with certain lenders (New Credit Agreement). The New Credit Agreement replaced the Company’s prior credit agreement, which had consisted of an initial term loan of $185 million and a $65 million revolving line of credit. The New Credit Agreement consists of a senior secured revolving credit facility of $275 million with a term of five years (New Credit Facility). The New Credit Agreement also provides the Company with the option to increase the aggregate principal amount of loans in the form of additional revolving loans or a separate tranche of term loans, in an aggregate amount that does not exceed $50 million, in each case subject to certain terms and conditions contained in the New Credit Agreement. Concurrently with the closing of the New Credit Agreement, the Company terminated the prior credit agreement after repaying the entire outstanding principal amount of $152.6 million and all accrued interest and fees thereon, utilizing $120.0 million borrowed under the New Credit Facility together with a portion of the Company’s then-existing cash balances. Upon terminating the prior credit agreement, the Company recorded a loss on extinguishment of debt of $3.4 million, to write off the remaining deferred debt issuance costs relating to the prior credit agreement.

At September 28, 2013, the outstanding balance under the New Credit Facility was $101.0 million. The initial interest rate per annum applicable to amounts outstanding under the New Credit Facility is, at the Company’s option, either (a) the base rate as defined in the New Credit Agreement (Base Rate) plus 1.0% per annum, or (b) the Eurodollar Rate as defined in the New Credit Agreement (Eurodollar Rate) plus 2.0% per annum, and the initial commitment fee on the unused portion of the New Credit Facility is 0.35%. As of September 28, 2013, the interest rate per annum applicable to amounts outstanding under the New Credit Facility was 2.19%. Following the filing of this Quarterly Report on Form 10-Q, the margins over the Base Rate and Eurodollar Rate applicable to the loans outstanding under the New Credit Facility, and the commitment fee payable on the unused portion of the New Credit Facility, may be adjusted periodically based on the consolidated leverage ratio of the Company, as calculated pursuant to the New Credit Agreement. The maximum applicable margins are 1.25% per annum for Base Rate loans and 2.25% per annum for Eurodollar Rate loans, and the minimum applicable margins are 0.5% per annum for Base Rate loans and 1.5% per annum for Eurodollar Rate loans. The maximum commitment fee is 0.40% per annum, and the minimum commitment fee is 0.25% per annum.

The Company’s obligations under the New Credit Agreement are secured by a lien on substantially all of the assets of Newport Corporation and certain of its domestic subsidiaries, which are guarantors under the New Credit Agreement, as well as by a pledge of certain shares of foreign subsidiaries of Newport Corporation.