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Line of Credit
12 Months Ended
Apr. 29, 2017
Debt Disclosure [Abstract]  
Line of Credit
Line of Credit
 
On November 18, 2016, the Company replaced its Amended and Restated Credit Agreement with a new Credit Agreement with Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer, Wells Fargo Bank, National Association, as L/C Issuer, and the Lenders named therein (the “Credit Agreement”). In connection with the execution of the Credit Agreement, the Amended and Restated Credit Agreement dated as of February 25, 2011 by and among the Company, Bank of America, N.A., as administrative agent, and certain other financial institutions was terminated.
The Credit Agreement has a maturity date of November 18, 2021. The credit facility is in the maximum principal amount of $150.0 million, with an option to increase the principal amount by up to an additional $100.0 million, subject to customary conditions and approval of the lender(s) providing new commitment(s). The credit facility is available for general corporate purposes, including working capital and acquisitions.
The credit facility provides for variable rates of interest based on the type of borrowing and the Company's debt to EBITDA financial ratio. The Credit Agreement is guaranteed by the Company’s wholly-owned U.S. subsidiaries. The Credit Agreement contains customary representations and warranties, financial covenants, restrictive covenants and events of default.
At April 29, 2017, the interest rate on the credit facility was 1.25% plus LIBOR. At April 29, 2017, we were in compliance with the covenants of the agreement. During fiscal 2017, we had no borrowings and payments of $31.1 million, which includes interest of $1.1 million under this credit facility. As of April 29, 2017, there were outstanding balances against the credit facility of $27.0 million. There was $123.0 million available to borrow under the credit facility as of April 29, 2017, which does not include the option to increase the principal amount. We believe the fair value approximates the carrying amount as of April 29, 2017.