Note 13 - Long-term Debt

6 Months Ended

Feb. 25, 2017

Notes to Financial Statements

Long-term Debt [Text Block]

13.

Long-Term Debt

On

April

11,

2016,

the Company entered into an amended and restated

$250.0

million unsecured revolving credit agreement (the “Credit Agreement”) with a syndicate of banks, which matures on

April

11,

2021

.

The Credit Agreement amended and restated the Company’s prior

$250.0

million revolving credit agreement, which was scheduled to mature on

May

4,

2016.

Under the Credit Agreement, the Company is able to borrow funds at variable interest rates based on, at the Company’s election, the Eurodollar rate or a base rate, plus in each case a spread based on the Company’s consolidated funded debt ratio. Availability of credit requires compliance with certain financial and other covenants, including a maximum consolidated funded debt ratio and minimum consolidated interest coverage ratio as defined in the Credit Agreement. The Company tests its compliance with these financial covenants on a fiscal quarterly basis. At

February

25,

2017,

the interest rates applicable to the Company’s borrowings under the Credit Agreement would be calculated as LIBOR plus

75

basis points at the time of the respective borrowing. As of

February

25,

2017,

the Company had

no

outstanding borrowings and had outstanding letters of credit amounting to

$66.2

million, leaving

$183.8

million available for borrowing under the Credit Agreement.

As of

February

25,

2017

, the Company was in compliance with all covenants under the Credit Agreement.