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Long-Term Debt
9 Months Ended
Jan. 26, 2014
Long-Term Debt  
Long-Term Debt

4.  Long-Term Debt

 

Long-term debt consists of the following:

 

 

 

January 26,

 

April 28,

 

 

 

2014

 

2013

 

Senior Secured Credit Facility, interest payable at least quarterly at either LIBOR and/or prime plus a margin

 

$

145,000

 

$

154,900

 

5.875% Senior Notes, interest payable semi-annually March 15 and September 15

 

350,000

 

350,000

 

7.75% Senior Notes, interest payable semi-annually March 15 and September 15, net of discount

 

298,426

 

298,246

 

8.875% Senior Subordinated Notes, interest payable semi-annually June 15 and December 15

 

350,000

 

350,000

 

Other

 

3,378

 

3,738

 

 

 

1,146,804

 

1,156,884

 

Less current maturities

 

438

 

415

 

Long-term debt

 

$

1,146,366

 

$

1,156,469

 

 

Senior SecuredCredit Facility—Our Senior Secured Credit Facility, as amended and restated (“Credit Facility”), matures April 19, 2018 and consists of a $300,000 revolving line of credit. The Credit Facility is secured on a first priority basis by substantially all of our assets and is guaranteed by substantially all of our significant subsidiaries. In July 2013, we entered into an agreement amending our Credit Facility to, among other things, modify our maximum allowed leverage and minimum interest coverage ratio covenants.  As a result, we capitalized new deferred financing costs of $673 during the nine months ended January 26, 2014.

 

Our net revolving line of credit availability at January 26, 2014, as limited by our borrowings, was approximately $120,000, after consideration of approximately $35,100 in outstanding letters of credit. We have an annual commitment fee related to the unused portion of the Credit Facility of up to 0.55% which is included in interest expense in the accompanying consolidated statements of operations. The weighted average effective interest rates of the Credit Facility for the nine months ended January 26, 2014 was 4.05%.

 

The Credit Facility includes a number of affirmative and negative covenants, as well as certain financial covenants including maintenance of a total leverage ratio, senior secured leverage ratio and minimum interest coverage ratio. The Credit Facility also restricts our ability to make certain investments or distributions. We were in compliance with the covenants as of January 26, 2014.

 

5.875% Senior Notes—In March 2013, we issued $350,000 of 5.875% Senior Notes due 2021 (“5.875% Senior Notes”). The net proceeds from the issuance were used to repay term loans under our Credit Facility. The 5.875% Senior Notes are general unsecured obligations and rank junior to all of our senior secured indebtedness and senior to our senior subordinated indebtedness. The 5.875% Senior Notes are redeemable, in whole or in part, at our option at any time on or after March 15, 2016, with call premiums as defined in the indenture governing the 5.875% Senior Notes.

 

7.75% Senior Notes—In March 2011, we issued $300,000 of 7.75% Senior Notes due 2019 at a price of 99.264% (“7.75% Senior Notes”).  The 7.75% Senior Notes are general unsecured obligations and rank junior to all of our senior secured indebtedness and senior to our senior subordinated indebtedness. The 7.75% Senior Notes are redeemable, in whole or in part, at our option at any time on or after March 15, 2015, with call premiums as defined in the indenture governing the 7.75% Senior Notes.

 

8.875% Senior Subordinated Notes — In August 2012, we issued $350,000 of 8.875% Senior Subordinated Notes due 2020 (“8.875% Senior Subordinated Notes”).  The 8.875% Senior Subordinated Notes are general unsecured obligations and rank junior to all of our senior indebtedness. The 8.875% Senior Subordinated Notes are redeemable, in whole or in part, at our option at any time on or after June 15, 2016, with call premiums as defined in the indenture governing the 8.875% Senior Subordinated Notes.

 

The 5.875% Senior Notes, 7.75% Senior Notes and 8.875% Senior Subordinated Notes are guaranteed, on a joint and several basis, by substantially all of our significant subsidiaries and certain other subsidiaries as described in Note 10. All of the guarantor subsidiaries are wholly owned by us.

 

The indentures governing the 5.875% Senior Notes, 7.75% Senior Notes and 8.875% Senior Subordinated Notes limit, among other things, our ability and our restricted subsidiaries’ ability to borrow money, make restricted payments, use assets as security in other transactions, enter into transactions with affiliates, pay dividends, or repurchase stock. The indentures also limit our ability to issue and sell capital stock of subsidiaries, sell assets in excess of specified amounts or merge with or into other companies.