Credit Agreement

3 Months Ended

Apr. 02, 2016

Debt Disclosure [Abstract]

Debt

Credit Agreement

Our revolving credit facility, as amended, (Credit Agreement) is for general corporate purposes with net aggregate availability of $150 million. The Credit Agreement contains an accordion feature that allows us to increase the amount of the credit facility from $150 million up to $200 million in total availability, subject to Lenders' approval. The Credit Agreement matures in February 2021.

The Credit Agreement provides the Lenders with a collateral security interest in substantially all of our assets and those of our subsidiaries and requires us to comply with, among other things, a maximum leverage ratio and a minimum interest coverage ratio. Under the terms of the Credit Agreement we pay a variable rate of interest and a commitment fee based on our leverage ratio. As of April 2, 2016, we had no outstanding borrowings or letters of credit and we were in compliance with all financial covenants.