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Note 5 - Long-term Debt

9 Months Ended

Oct. 02, 2021

On May 17, 2019, we entered into a credit agreement (the “Current Credit Agreement”), which provides for a five-year secured term loan facility in an aggregate principal amount of $175.0 million and a five-year secured revolving loan facility in an aggregate principal amount of up to $75.0 million. Details of the term loan and the revolving loan (collectively, "long-term debt"), including the basis for interest, payment terms, and covenants are described in the Current Credit Agreement.

During the first nine months of fiscal 2021, we paid required quarterly installments totaling $8.8 million on our long-term debt. The fair value of our long-term debt approximates the carrying value, which is reflected in our Consolidated Balance Sheets as follows:

	*October 2,*			*January 2,*
(In thousands)	*2021*			*2021*
Principal amount	$	163,125		$	171,875
Unamortized original issuance discount and debt costs		(905	)		(1,179	)
Less: Current portion of long-term debt		(17,163	)		(12,762	)
Long-term debt, net of current portion and unamortized debt issue costs	$	145,057		$	157,934

As of October 2, 2021, the effective interest rate on the term loan was 1.55%, and the effective interest rate on the revolving loan was 1.33%. We pay a commitment fee of 0.20% on the unused portion of the revolving loan. Interest expense related to our long-term debt was included in Interest expense on our Consolidated Statements of Operations as follows:

	*Three Months Ended*				*Nine Months Ended*
	*October 2,*		*September 26,*		*October 2,*		*September 26,*
(In thousands)	*2021*		*2020*		*2021*		*2020*
Contractual interest	$	568	$	663	$	1,753	$	2,667
Amortization of original issuance discount and debt costs		90		92		274		300
Total interest expense related to long-term debt	$	658	$	755	$	2,027	$	2,967

Expected future principal payments are based on the schedule of required quarterly installments. As of October 2, 2021, expected future principal payments on our long-term debt were as follows:

Fiscal year	(in thousands)
2021 (Remaining quarter)	$	4,375
2022		17,500
2023		17,500
2024		123,750
	$	163,125