Indebtedness and Interest Expense (Tables)

12 Months Ended

Jan. 01, 2017

Our long-term debt consisted of the following for the periods presented:



	Successor
	January 1, 2017			January 3, 2016
	(in thousands)
Term loan facility	$	739,100		$	746,700
Senior notes	255,000			255,000
Note payable	13			63
Total debt outstanding	994,113			1,001,763
Less:
Unamortized original issue discount	(2,235		)	(2,776		)
Deferred financing costs, net	(15,999		)	(20,004		)
Current portion	(7,613		)	(7,650		)
Bank indebtedness and other long-term debt, less current portion	$	968,266		$	971,333

We were in compliance with the debt covenants in effect as of January 1, 2017 for both the secured credit facilities and the senior notes. For further discussion regarding the debt covenants, see secured credit facilities and Senior Unsecured Notes sections below.

Schedule of Future Debt Payment Obligations

The following table sets forth our future debt payment obligations as of January 1, 2017 (in thousands):



One year or less	$	7,613
Two years	5,700
Three years	7,600
Four years	9,500
Five years	708,700
Thereafter	255,000
	994,113
Less: debt financing costs, net	(15,999		)
Less: unamortized discount	(2,235		)
	$	975,879

Schedule of Interest Expense

Interest expense consisted of the following for the periods presented:



	Successor							Predecessor
	Fiscal Year Ended				For the 317 Day Period Ended			For the 47 Day Period Ended
	January 1, 2017		January 3, 2016		December 28, 2014			February 14, 2014

Term loan facility ⁽¹⁾	$	30,987	$	31,760	$	29,962		$	—
Senior notes	19,774		21,023		17,697			—
Bridge loan facility ⁽²⁾	—		—		4,943			—
Predecessor Facility	—		—		—			745
Capital lease obligations	1,749		1,791		1,541			275
Sale leaseback obligations	10,714		11,096		3,721			—
Amortization of debt issuance costs	4,005		4,083		3,488			58
Other	516		829		(400		)	73
Total interest expense	$	67,745	$	70,582	$	60,952		$	1,151

__________________

(1) Includes amortization of original issue discount.


(2)	The 317 day period ended December 28, 2014 includes debt issuance costs of $4.7 million related to the issuance of the Bridge Loan and $0.2 million interest.

Senior Notes [Member]

Debt Instrument [Line Items]

Long-term Debt [Text Block]

Senior Unsecured Notes

Also in connection with the Merger on February 14, 2014, we borrowed $248.5 million under a bridge loan facility (the “bridge loan facility”) and used the proceeds to fund a portion of the Acquisition. We incurred $4.7 million of financing costs and $0.2 million of interest related to the bridge loan facility, which are included in “Interest expense” in our Consolidated Statements of Earnings for the 317 day period ended December 28, 2014.

On February 19, 2014, we issued $255.0 million aggregate principal amount of 8.000% Senior Notes due 2022 (the “senior notes”) in a private offering. The senior notes bear interest at a rate of 8.000% per year and mature on February 15, 2022. On or after February 15, 2017, we may redeem some or all of the senior notes at certain redemption prices set forth in the indenture governing the senior notes (the “indenture”). Prior to February 15, 2017, we may redeem (i) up to 40.0% of the original aggregate principal amount of the senior notes with the net cash proceeds of one or more equity offerings at a price equal to 108.0% of the principal amount thereof, plus accrued and unpaid interest, or (ii) some or all of the notes at a price equal to 100.0% of the principal amount thereof, plus accrued and unpaid interest, plus the applicable “make-whole” premium set forth in the indenture.

On December 2, 2014 we completed an exchange offer whereby the original senior notes were exchanged for new notes (the “exchange notes”) which are identical to the initial senior notes except that the issuance of the exchange notes is registered under the Securities Act, the exchange notes do not bear legends restricting their transfer and they are not entitled to registration rights under our registration rights agreement. We refer to the senior notes and the exchange notes collectively as the “senior notes.”

We paid $6.4 million in debt issuance costs related to the senior notes issued in February 2014, which we recorded as an offset to “Bank indebtedness and other long-term debt, net of deferred financing costs” on our Consolidated Balance Sheets. The deferred financing costs are being amortized over the life of the senior notes to “Interest expense” on our Consolidated Statements of Earnings.

Our obligations under the senior notes are fully and unconditionally guaranteed, jointly and severally, by our present and future direct and indirect wholly-owned material domestic subsidiaries that guarantee our secured credit facilities.

The indenture contains restrictive covenants that limit our ability to, among other things: (i) incur additional debt or issue certain preferred shares; (ii) create liens on certain assets; (iii) make certain loans or investments (including acquisitions); (iv) pay dividends on or make distributions in respect of our capital stock or make other restricted payments; (v) consolidate, merge, sell or otherwise dispose of all or substantially all of our assets; (vi) sell assets; (vii) enter into certain transactions with our affiliates; and (viii) restrict dividends from our subsidiaries.

The weighted average effective interest rate incurred on borrowings under our senior notes was 8.2% for the 2016 fiscal year, 8.3% for the 2015 fiscal year and the 317 day period ended December 28, 2014, which included amortization of debt issuance costs and other fees related to our senior notes.