Chili's 2015 Annual Report Download - page 66

8. DEBT
Long-term debt consists of the following (in thousands):
2015 2014
3.88% notes ............................................. $299,766 $299,736
2.60% notes ............................................. 249,899 249,864
Term loan ............................................... 0 187,500
Revolving credit facility .................................... 383,750 80,000
Capital lease obligations (see Note 9) ......................... 40,849 43,086
974,264 860,186
Less current installments ................................... (3,439) (27,884)
$970,825 $832,302
During the first nine months of fiscal 2015, $97 million was drawn from the $250 million revolving credit
facility primarily to fund share repurchases, and we paid the required quarterly term loan payments totaling $18.7
million. In March 2015, we terminated the existing credit facility including both the $250 million revolver and
the term loan and entered into a new $750 million revolving credit facility. Approximately $345.8 million was
drawn from the new revolver and the proceeds were used to pay off the outstanding balances of the term loan and
$250 million revolver in the amount of $168.8 million and $177.0 million, respectively. During the fourth quarter
of fiscal 2015, an additional $38.0 million was drawn from the new revolver primarily to fund share repurchases.
Subsequent to the end of the fiscal year, an additional $135.5 million was borrowed from the $750 million
revolving credit facility primarily to fund the acquisition of a franchisee which owns 103 Chili’s restaurants. See
Note 16 for additional disclosures related to the acquisition.
The maturity date of the $750 million revolving credit facility is March 12, 2020. The revolving credit
facility bears interest of LIBOR plus an applicable margin, which is a function of our credit rating and debt to
cash flow ratio, but is subject to a maximum of LIBOR plus 2.00%. Based on our current credit rating, we are
paying interest at a rate of LIBOR plus 1.38%. One month LIBOR at June 24, 2015 was approximately 0.19%.
As of June 24, 2015, $366.2 million of credit is available under the revolving credit facility.
In May 2013, we issued $550.0 million of notes consisting of two tranches—$250.0 million of 2.60% notes
due in May 2018 and $300.0 million of 3.88% notes due in May 2023. We received proceeds totaling
approximately $549.5 million prior to debt issuance costs and utilized the proceeds to redeem the 5.75% notes
due in June 2014, pay down the revolver and fund share repurchases. The notes require semi-annual interest
payments which began in the second quarter of fiscal 2014.
Our debt agreements contain various financial covenants that, among other things, require the maintenance
of certain leverage and fixed charge coverage ratios. We are currently in compliance with all financial covenants.
Excluding capital lease obligations (see Note 9) and interest, our long-term debt maturities for the five years
following June 24, 2015 and thereafter are as follows (in thousands):
Fiscal Year Long-Term Debt
2016 .......................................................... $ 0
2017 .......................................................... 0
2018 .......................................................... 249,899
2019 .......................................................... 0
2020 .......................................................... 383,750
Thereafter ..................................................... 299,766
$933,415
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