Long-Term Debt:

On March 10, 2015, we entered into a secured credit agreement (the "Credit Agreement") with Jefferies Finance, LLC and certain other lenders for purposes of funding, in part, our acquisition of Silicon Image. The Credit Agreement provided for a $350 million term loan (the "Term Loan") maturing on March 10, 2021 (the "Term Loan Maturity Date"). We received $346.5 million after deduction of an original issue discount of $3.5 million and we paid debt issuance costs of $8.3 million. The Term Loan bears variable interest equal to the LIBOR, subject to a 1.00% floor, plus a spread of 4.25%. The current effective interest rate on the Term Loan is 6.16%.

The Term Loan is payable through a combination of quarterly installments of approximately $0.9 million beginning on July 4 2015, and annual excess cash flow payments, as defined in the Credit Agreement, beginning in the second quarter of 2016. Payments could also be due upon certain issuances of additional indebtedness, and certain asset dispositions, with any remaining outstanding principal amount due and payable on the Term Loan Maturity Date. The percentage of excess cash flow we are required to pay ranges from 0% to 75%, depending on our leverage. Currently, the Credit Agreement would require a 75% excess cash flow payment. The Credit Agreement also contains certain restrictive covenants, including limitations on liens, mergers and consolidations, sales of assets, payment of dividends and indebtedness, but the Credit Agreement does not contain financial covenants.

The original issue discount and the debt issuance costs have been accounted for as a reduction to the carrying value of the Term Loan on our Consolidated Balance Sheets and are being amortized to Interest expense in our Consolidated Statements of Operations over the contractual term, using the effective interest method.

The carrying value of the Term Loan is reflected in our Consolidated Balance Sheets as follows:



(In thousands)	April 4, 2015			March 29, 2015
Principal amount	$	350,000		$	—
Unamortized original issue discount and debt issuance costs	(11,500		)	—
Less current portion of Long-term debt	(122		)	—
Long-term debt	$	338,378		$	—

Interest expense related to the Term Loan was included in Interest expense on the Consolidated Statements of Operations as follows:



	Three Months Ended
(In thousands)	April 4, 2015		March 29, 2014
Contractual interest	$	1,327	$	—
Amortization of debt issuance costs and discount	284		—
Total Interest expense related to the Term Loan	$	1,611	$	—