Einstein Bros 2005 Annual Report Download - page 42

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http://www.sec.gov/Archives/edgar/data/949373/000110465906016136/a06-3178_110k.htm[9/11/2014 10:13:03 AM]
Development Authority (NJEDA) at an interest rate of 9% per annum. Principal is paid annually and interest is paid quarterly. The note matures on
December 1, 2008 and is secured by the assets of Manhattan.
On July 3, 2003, we placed an advanced funding of the note in escrow to enact a debt defeasance as allowed for in the agreement. This
advanced funding is shown as restricted cash and the note is included in both current portion and long-term portion of debt in the January 3, 2006
and December 28, 2004 consolidated balance sheets in accordance with the payment terms. This classification will continue until the note is fully
paid from the escrow amount proceeds.
54
NEW WORLD RESTAURANT GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements (Continued)
Our senior notes and other long-term debt obligations for the three years following January 3, 2006 are as follows:
Fiscal year (in thousands of dollars):
2006
$ 280
2007
280
2008
160,280
$ 160,840
Debt Redemption and Refinancing
On February 28, 2006, we completed the refinancing of the AmSouth Revolver and the $160 Million Notes. Our new financing consists of a:
· $15 million revolving credit facility maturing on March 31, 2011;
· $80 million first lien term loan maturing on March 31, 2011;
· $65 million second lien term loan maturing on February 28, 2012; and,
· $25 million subordinated term loan maturing on February 28, 2013.
Each of the loans requires the payment of interest in arrears on a quarterly basis commencing on March 31, 2006. Additionally, the $80 million
First Lien Term Loan requires quarterly scheduled minimum principal reductions commencing June 30, 2006. In the event that we have not
extended the maturity date of the Series Z to a date that is on or after July 26, 2012 (July 26, 2013 for the Subordinated Term Loan) or redeemed
the Series Z by various dates in 2008 and 2009, then each of the loans have various accelerated maturity dates beginning in December 2008. For an
additional discussion regarding our new debt facility, see Note 27.
11. LEASES
Capital Leases
We lease certain equipment under capital leases. Included in property and equipment are the asset values of $63,000 and $51,000 and the
related accumulated amortization of $16,000 and $5,000 at January 3, 2006 and December 28, 2004, respectively. Amortization of assets under
capital leases is included in depreciation and amortization expense.
Operating Leases
We lease office space, restaurant space and certain equipment under operating leases having terms that expire at various dates through fiscal
2017. Our restaurant leases have renewal clauses of 1 to 20 years at our option and, in some cases, have provisions for contingent rent based upon
a percentage of gross sales, as defined in the leases. Rent expense for fiscal 2005, 2004 and 2003 was approximately $27.1 million, $27.9 million
and $27.8 million, respectively. Contingent rent included in rent expense for fiscal 2005, 2004 and 2003 was approximately $140,000, $130,000
and $130,000, respectively.
55