Indebtedness

12 Months Ended

Sep. 29, 2018

Short-term borrowings consist of:



	September 29, 2018		September 30, 2017
Lines of credit	$	88	$	89
Other short-term debt	3,535		—
Short-term borrowings	$	3,623	$	89

We maintain short-term line of credit facilities with banks throughout the world that are principally demand lines subject to revision by the banks. Interest on outstanding lines of credit is 0.95% at September 29, 2018.

Long-term debt consists of:



	September 29, 2018			September 30, 2017
U.S. revolving credit facility	$	430,000		$	540,110
Senior notes	300,000			300,000
Securitization program	130,000			120,000
Obligations under capital leases	918			306
Senior debt	860,918			960,416
Less deferred debt issuance cost	(1,717		)	(3,468		)
Less current installments	(365		)	(295		)
Long-term debt	$	858,836		$	956,653

Our U.S. revolving credit facility matures on June 28, 2021. Our U.S. revolving credit facility has a capacity of $1,100,000 and provides an expansion option, which permits us to request an increase of up to $200,000 to the credit facility upon satisfaction of certain conditions. The credit facility is secured by substantially all of our U.S. assets. The loan agreement contains various covenants which, among others, specify interest coverage and maximum leverage. We are in compliance with all covenants. The weighted-average interest rate on all of the outstanding credit facility borrowings is 3.80% and is based on LIBOR plus the applicable margin, which was 1.63% at September 29, 2018.

On July 26, 2018, the SECT entered into a revolving credit facility with a borrowing capacity of $35,000, maturing on July 26, 2020. Interest for the revolving credit facility is based on LIBOR plus a margin of 2.13%. As of September 29, 2018, there were no outstanding borrowings.

At September 29, 2018, we had $300,000 principal amount of 5.25% senior notes due December 1, 2022 with interest paid semiannually on June 1 and December 1 of each year. The senior notes are unsecured obligations, guaranteed on a senior unsecured basis by certain subsidiaries and contain normal incurrence-based covenants and limitations such as the ability to incur additional indebtedness, pay dividends, make other restricted payments and investments, create liens and certain corporate acts such as mergers and consolidations. The effective interest rate for these notes after considering the amortization of deferred debt issuance costs is 5.73%.

The Securitization Program matures on October 23, 2019 and effectively increases our borrowing capacity by up to $130,000. Under the Securitization Program, we sell certain trade receivables and related rights to an affiliate, which in turn sells an undivided variable percentage ownership interest in the trade receivables to a financial institution, while maintaining a subordinated interest in a portion of the pool of trade receivables. Interest for the Securitization Program is 3.07% at September 29, 2018 and is based on 30-day LIBOR plus an applicable margin. A commitment fee is also charged based on a percentage of the unused amounts available and is not material. The agreement governing the Securitization Program contains restrictions and covenants which include limitations on the making of certain restricted payments, creation of certain liens, and certain corporate acts such as mergers, consolidations and sale of substantially all assets. The Securitization Program has a minimum borrowing requirement equal to the lesser of either 80% of our borrowing capacity or 100% of our borrowing base, which is a subset of the trade receivables sold under this agreement. As of September 29, 2018, our minimum borrowing requirement was $104,000.

Maturities of long-term debt are $365 in 2019, $130,199 in 2020, $430,200 in 2021, $118 in 2022 and $300,036 in 2023.

At September 29, 2018, we had pledged assets with a net book value of $1,502,295 as security for long-term debt.

At September 29, 2018, we had $638,478 of unused short and long-term borrowing capacity, including $626,083 from the U.S. revolving credit facility.

Commitment fees are charged on some of these arrangements and on the U.S. revolving credit facility based on a percentage of the unused amounts available and are not material.