Debt and Capital Leases

12 Months Ended

Sep. 26, 2017

Debt and Capital Lease Obligations [Abstract]

3.	Debt and Capital Leases:

	2017			2016
Cadence Bank credit facility		5,300			0
Capital signage leases with Yesco, LLC with payments of principal and interest (8%) due monthly.		0			11
Notes payable with Ally Financial with payments of principal and interest (3.9% to 5%) due monthly. The loans are secured by vehicles.		56			27
		5,356			38
Less current portion		(17	)		(19	)
Long term portion	$	5,339		$	19

Cadence Credit Facility

On September 8, 2016, the Company entered into a credit agreement with Cadence Bank (“Cadence”) pursuant to which Cadence agreed to loan the Company up to $9,000,000 (the “Cadence Credit Facility”). On September 11, 2017, the Cadence Credit Facility was amended to increase the loan maximum to $12,000,000 and extend the maturity date to December 31, 2020. The Cadence Credit Facility accrues commitment fees on the daily unused balance of the facility at a rate of 0.25%. All borrowings under the Cadence Credit Facility bear interest at a variable rate based upon the Company’s election of (i) 3.0% plus the base rate, which is the highest of the (a) Federal Funds Rate plus 0.5%, (b) the Cadence bank publicly-announced prime rate, and (c) LIBOR plus 1.0%, or (ii) LIBOR, with a 0.125% floor, plus 4.0%. Interest is due at the end of each calendar quarter if the Company selects to pay interest based on the base rate and at the end of each LIBOR period if it selects to pay interest based on LIBOR. As of September 26, 2017, the weighted average interest rate applicable to borrowings under the Cadence Credit Facility was 5.2375%.

The Cadence Credit Facility contains certain affirmative and negative covenants and events of default that the Company considers customary for an agreement of this type, including covenants setting a maximum leverage ratio of 5.35:1 and a minimum fixed charge coverage ratio of 1.25:1. As of September 27, 2016, the Company was in compliance with its covenants.

As a result of entering into the Cadence Credit Facility and the amendment, the Company paid loan origination costs including professional fees of approximately $197,000 and will amortize these costs over the term of the credit agreement.

The obligations under the Cadence Credit Facility are collateralized by a first priority lien on substantially all of the Company’s assets.

As of September 26, 2017, the outstanding balance on the facility was $5,300,000.

As of September 27, 2016, principal payments on debt become due as follows:

Periods Ending September,
2018	$	17
2019		17
2020		11
2021		5,310
2022		1
	$	5,356

Total interest expense on notes payable and capital leases was $191,000 and $126,000 for fiscal 2017 and fiscal 2016, respectively.