Debt

In April 2015, the FASB issued ASU No. 2015-03, "Simplifying the Presentation of Debt Issuance Costs (Topic 835-30)." This ASU requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. We have adopted ASU 2015-03 in the fourth quarter of fiscal 2016 and reclassified $3,970 and $2,458 of debt issuance costs from other non-current assets to long-term debt in our consolidated balance sheets as of April 30, 2016 and April 25, 2015, respectively.

Our long-term debt consists of the following:



			Carrying Value
	Interest Rate		April 30, 2016			April 25, 2015
Senior notes due fiscal 2018 ¹	5.75	%	$	150,000		$	150,000
Senior notes due fiscal 2019 ²	2.95	%	60,000			60,000
Senior notes due fiscal 2022 ²	3.59	%	165,000			165,000
Senior notes due fiscal 2024 ²	3.74	%	100,000			100,000
Senior notes due fiscal 2025 ³	3.48	%	250,000			250,000
Term loan due fiscal 2021 ⁴	1.81	%	317,625			—
Less: Deferred debt issuance costs			(3,970		)	(2,458		)
Total debt			1,038,655			722,542
Less: Current maturities of long-term debt			(16,500		)	—
Long-term debt			$	1,022,155		$	722,542


1.	Issued in March 2008.


2.	Issued in December 2011.


3.	Issued in March 2015.


4.	Issued in June 2015. Interest rate is LIBOR plus 1.375% as of April 30, 2016.

Expected future principal payments for our long-term debt are as follows as of April 30, 2016:



Fiscal Year
2017	$	16,500
2018	174,750
2019	93,000
2020	33,000
2021	210,375
Thereafter	515,000
Total	$	1,042,625

In June 2015, we entered into a credit agreement with The Bank of Tokyo-Mitsubishi UFJ, Ltd. ("BTMU"), as administrative agent, and Bank of America, N.A., as syndication agent (the “Credit Agreement”). Pursuant to the Credit Agreement, the lenders provided us with senior unsecured lending facilities of up to $1,500,000, consisting of a $1,000,000 unsecured term loan and a $500,000 unsecured revolving line of credit. Interest on borrowings under the Credit Agreement is variable and is determined at our option as LIBOR plus a spread, which can range from 1.125% to 2.000%, or the BTMU prime rate plus a spread, which can range from 0.125% to 1.000%. These spreads, as well as a commitment fee on the unused portion of the facility, are based on our leverage ratio, as defined in the Credit Agreement. The term loan and revolving credit facilities will mature no later than June 2020.

Upon certain significant asset dispositions, we agreed to use proceeds from such dispositions to effect prepayment of outstanding loan balances under the Credit Agreement. On August 28, 2015, we completed the sale of Patterson Medical, as described further in Note 5 to the Consolidated Financial Statements. As a result of this sale, $670,000 was repaid on the original outstanding $1,000,000 unsecured term loan. We recorded $5,153 of accelerated debt issuance cost amortization within interest expense concurrent with this early repayment of debt. Additionally, principal payments of $12,375 were made during the fiscal year ended April 30, 2016. As of April 30, 2016, $317,625 was outstanding under the unsecured term loan at an interest rate of 1.81%.

In June 2015, our previous $300,000 credit facility, which was due to expire in December 2016, was terminated and replaced by the revolving line of credit under the Credit Agreement. As of April 30, 2016, $20,000 was outstanding under our current revolving line of credit at an interest rate of 3.875%. There were no outstanding borrowings under the previous facility at April 25, 2015.

We are subject to various financial covenants under our debt agreements including the maintenance of leverage and interest coverage ratios. In the event of our default, any outstanding obligations may become due and payable immediately. We met the covenants under our debt agreements as of April 30, 2016.