Chili's 2008 Annual Report Download - page 62

BRINKER INTERNATIONAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
9. INCOME TAXES (Continued)
accrued, compared to $4.3 million ($3.3 million net of a $1.0 million federal deferred tax benefit) at
June 28, 2007.
10. DEBT
Long-term debt consists of the following (in thousands):
2008 2007
Term loan ....................................... $400,000 $ —
Credit facilities ................................... 158,000 481,498
5.75% notes ..................................... 299,070 298,913
Capital lease obligations (see Note 11) .................. 46,507 48,268
903,577 828,679
Less current installments ............................ (1,973) (1,761)
$901,604 $826,918
In October 2007, we entered into a three-year term loan agreement for $400 million and terminated a
one-year unsecured committed credit facility of $400 million. The term loan proceeds were used to pay off
all outstanding amounts under the one-year unsecured committed credit facility. The term loan bears
interest at LIBOR plus an applicable margin, which is a function of our credit rating at such time, but is
subject to a maximum of LIBOR plus 1.5% and expires in October 2010. At June 25, 2008, $400.0 million
was outstanding and, based on our current credit rating, we are paying interest at a rate of LIBOR plus
0.65% (3.13%).
We have credit facilities aggregating $550.0 million at June 25, 2008. A revolving credit facility of
$300.0 million bears interest at LIBOR plus 0.75% (3.23% as of June 25, 2008) with a maximum rate of
LIBOR plus 1.5% and expires in October 2009. At June 25, 2008, no balance was outstanding under this
facility. In August 2007, we extended the $50.0 million uncommitted credit facility through August 2008. In
September 2007, we increased the $50.0 million uncommitted credit facility to $100.0 million and extended
the expiration date to September 2008. The uncommitted credit facility of $100.0 million bears interest at
LIBOR plus 0.23% (2.71% as of June 25, 2008). At June 25, 2008, $100.0 million was outstanding under
this facility. The remaining credit facility of $150.0 million is an uncommitted obligation giving the lender
an option not to extend funding and bears interest based upon a negotiated rate (federal funds rate plus
0.84% or 2.90% as of June 25, 2008). Our current borrowing capacity under this credit facility as of
June 25, 2008 was $150.0 million based on our current credit rating. At June 25, 2008, $58.0 million was
outstanding under this facility.
Unused credit facilities available to us totaled $392.0 million at June 25, 2008. Obligations under our
credit facilities, which require short-term repayments, have been classified as long-term debt, reflecting our
intent and ability to refinance these borrowings through other existing credit facilities.
In December 2007, we terminated a $10.0 million revolving credit facility which was set to expire in
July 2011 and paid off the outstanding balance of $3.6 million.
In May 2004, we issued $300.0 million of 5.75% notes and received proceeds totaling approximately
$298.4 million prior to debt issuance costs. The Notes require semi-annual interest payments and mature in
June 2014.
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