6.Term Debt and Line of Credit

ABL Credit Facility

On November 18, 2015, the Company entered into a new five-year revolving credit agreement with Wells Fargo Bank, National Association (“Wells Fargo”), as administrative agent, and the other lenders party thereto (with all related loan documents, and as amended from time to time, the “ABL Credit Facility”). The ABL Credit Facility provides for a five-year, $50.0 million senior secured revolving credit facility. The ABL Credit Facility also provides that, under certain conditions, we may increase the aggregate principal amount of loans outstanding thereunder by up to $10.0 million. Borrowings under the ABL Credit Facility bear interest, at the Company’s option, at a base rate or the London interbank offered rate (“LIBOR”) plus, in each case, an applicable margin. The ABL Credit Facility will mature, and the commitments thereunder will terminate, on November 17, 2020.

Events of default under the ABL Credit Facility include customary events such as a cross-default provision with respect to other material debt. As of March 26, 2016, the Company is in compliance with all covenants of the ABL Credit Facility.

As of March 26, 2016, there was $26.8 million outstanding under the ABL Credit Facility and the net availability thereunder was $23.2 million.

Term debt consisted of the following as of March 26, 2016 and December 26, 2015 (in thousands):

	March 26, 2016			December 26, 2015
Term loan credit facility through November 2020	$	85,000		$	85,000
Equipment term loan, Goodyear, due monthly through March 2021	3,029			2,055
Equipment term loan, Rader Farms, due monthly through August 2019	1,845			1,972
Equipment term loan, Willamette Valley Fruit Company, due monthly through August 2019	1,370			1,464
Capital lease obligations, primarily due September 2017	57			48

Long-term debt	91,301			90,539
Less deferred financing fees, net	(6,068		)	(5,413		)
Less current portion of long-term debt	(2,277		)	(1,826		)

Long-term debt, less current portion	$	82,956		$	83,300

Term Loan Credit Facility

Also on November 18, 2015 and concurrent with the execution of the ABL Credit Facility, Inventure Foods and certain of its subsidiaries entered into a new five-year term loan credit agreement with BSP Agency, LLC, a Delaware limited liability company (“BSP”), as administrative agent, and the other lenders party thereto (with all related loan documents, and as amended from time to time, the “Term Loan Credit Facility”). The Term Loan Credit Facility provides for a $85.0 million senior secured term loan that matures on November 17, 2020. The Term Loan Credit Facility also provides that, under certain conditions, we may increase the aggregate principal amount of term loans outstanding thereunder by up to $25.0 million. Borrowings under the Term Loan Credit Facility bear interest, at the Company’s option, at a base rate or LIBOR plus, in each case, an applicable margin.

The Term Loan Credit Facility contains customary negative covenants and also requires the Company, together with its subsidiaries, to comply with a Fixed Charge Coverage Ratio (as defined in the Term Loan Credit Facility) and a Total Leverage Ratio (as defined in the Term Loan Credit Facility). The first Fixed Charge Coverage Ratio and Total Leverage Ratio measurement period was the end of the first quarter of fiscal 2016. On March 9, 2016, the Company entered into that certain First Amendment to Credit Agreement, dated March 9, 2016, with BSP, as administrative agent, and the other lenders party thereto (the “Amendment”). The Amendment amends the Term Loan Credit Facility to defer the Company’s obligation to comply with the Total Leverage Ratio until the end of the third quarter of fiscal 2016.

Events of default under the Term Loan Credit Agreement include customary events such as a cross-default provision with respect to other material debt. As of March 26, 2016 the Company is in compliance with all covenants of the Term Loan Credit Agreement.

Equipment Loans

In August 2015, we entered into an equipment term loan with Banc of America Leasing & Capital LLC. The loan will finance up to $4.0 million of new kettles and related equipment for our Goodyear, Arizona facility. The equipment term loan accrues interest at a rate of 3.07% and is expected to be repaid over 60 recurring monthly payments commencing May 2016.

In August 2014, we entered into two separate equipment term loans with Banc of America Leasing & Capital LLC; one for $2.6 million to finance equipment to be used at the Company’s Rader Farms facility, and the other for $1.9 million to finance equipment to be used at Willamette Valley Fruit Company. Both of these equipment term loans accrue interest at a rate of 2.35% and will be repaid over 60 recurring monthly payments commencing September 15, 2014.