Jack In The Box 2009 Annual Report Download - page 55

Table of Contents
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The detail of long-term debt at each year-end follows (in thousands):
 
Revolver, variable interest rate based on an applicable margin plus LIBOR $ — $ 91,000
Term loan, variable interest rate based on an applicable margin plus LIBOR, 1.57% at September 27,
2009 415,000 415,000
Capital lease obligations, 9.97% weighted average interest rate 10,247 12,526
Other notes, principally unsecured — 55
425,247 518,581
Less current portion (67,977) (2,331)
$357,270 $516,250
Credit facility — Our credit facility is comprised of (i) a $150.0 million revolving credit facility maturing on December 15, 2011
and (ii) a term loan maturing on December 15, 2012, both bearing interest at London Interbank Offered Rate (“LIBOR”) plus 1.125%.
As part of the credit agreement, we may request the issuance of up to $75.0 million in letters of credit, the outstanding amount of which
reduces the net borrowing capacity under the agreement. The credit facility requires the payment of an annual commitment fee based on
the unused portion of the credit facility. The credit facility’s interest rates and the annual commitment rate are based on a financial
leverage ratio, as defined in the credit agreement. Our obligations under the credit facility are secured by first priority liens and security
interests in the capital stock, partnership and membership interests owned by us and (or) our subsidiaries, and any proceeds thereof,
subject to certain restrictions set forth in the credit agreement. Additionally, the credit agreement includes a negative pledge on all tangible
and intangible assets (including all real and personal property) with customary exceptions. At September 27, 2009, we had no borrowings
under the revolving credit facility, $415.0 million outstanding under the term loan and letters of credit outstanding of $35.5 million.
We are subject to a number of customary covenants under our credit facility, including limitations on additional borrowings,
acquisitions, loans to franchisees, capital expenditures, lease commitments, stock repurchases and dividend payments, and requirements
to maintain certain financial ratios. Following the end of each fiscal year, we may be required to prepay the term debt with a portion of our
excess cash flows for such fiscal year, as defined in the credit agreement. Other events and transactions, such as certain asset sales, may
also trigger an additional mandatory prepayment. In connection with the sale of Quick Stuff, we estimate we will be required to make a
term loan prepayment of $21.0 million in February 2010, which will be applied to the remaining scheduled principal installments on a
pro-rata basis.
Future cash payments — Scheduled principal payments on our long-term debt for each of the next five fiscal years are as follows
(in thousands):

2010 $ 67,977
2011 63,060
2012 220,291
2013 68,409
2014 931
Total principal payments $420,668
Capitalized interest — We capitalize interest in connection with the construction of our restaurants and other facilities. Interest
capitalized in 2009, 2008 and 2007 was $0.7 million, $0.9 million and $1.4 million, respectively.
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