Cracker Barrel 2010 Annual Report Download - page 51

5 DEBT
Long-term debt consisted of the following at:
July 30, July 31,
2010 2009
Term loans payable on or before
April 27, 2013 $ 347,559 $ 645,000
Term loans payable on or before
April 27, 2016 232,585 —
Note payable 346 444
580,490 645,444
Current maturities (6,746) (7,404)
Long-term debt $ 573,744 $ 638,040
e aggregate maturities of long-term debt subsequent to
July 30, 2010 are as follows:
Year
2011 $ 6,746
2012 6,748
2013 342,224
2014 2,653
2015 2,617
ereaer 219,502
Total $ 580,490
Credit Facility
e Company’s credit facility (the “Credit Facility”) consists
of term loans (aggregate outstanding at July 30, 2010 and
July 31, 2009 were $580,144 and $645,000, respectively) and
a $250,000 revolving credit facility (the “Revolving Credit
Facility”). On November 6, 2009, the Company entered into
an amendment to the Credit Facility which extended the
availability of $165,000 of the $250,000 Revolving Credit
Facility to January 27, 2013 from April 27, 2011. e
amendment also extended the maturity date of $250,000 of
the Company’s then outstanding term loans to April 27,
2016 from April 27, 2013.
In 2006, the Company entered into an interest rate swap
which resulted in the swapped portion of the Company’s
outstanding term loans being xed at 5.57% plus the
Company’s credit spread over the 7-year life of the interest
rate swap (see Notes 2 and 6).
e interest rates for the term loans and Revolving Credit
Facility are based on either LIBOR or prime. A spread is
added to the interest rates in accordance with the Credit
Facility. As of July 30, 2010 and July 31, 2009, the Company’s
term loans were swapped at weighted average interest rates of
7.47% and 7.07%, respectively. As of July 30, 2010 and July
31, 2009, the weighted average interest rates on the remain-
ing $5,144 and $45,000 of the term loans, respectively, were
2.23% and 3.53%, respectively.
At July 30, 2010 and July 31, 2009, the Company did not
have any outstanding borrowings under the Revolving Credit
Facility. At July 30, 2010, the Company had $30,346 of
standby leers of credit, which reduce the Company’s
availability under the Revolving Credit Facility (see Note
17). At July 30, 2010, the Company had $219,654 available
under the Revolving Credit Facility.
e Credit Facility contains customary nancial cov-
enants, which are specied in the agreement and include
maintenance of a maximum consolidated total leverage ratio
and a minimum consolidated interest coverage ratio. At July
30, 2010 and July 31, 2009, the Company was in compliance
with all debt covenants.
e Credit Facility also imposes restrictions on the
amount of dividends the Company is able to pay. If there is
no default then existing and there is at least $100,000 then
available under the Revolving Credit Facility, the Company
may both: (1) pay cash dividends on its common stock if the
aggregate amount of dividends paid in any scal year is less
than 15% of Consolidated EBITDA from continuing
operations (as dened in the Credit Facility) during the
immediately preceding scal year; and (2) in any event,
increase its regular quarterly cash dividend in any quarter by
an amount not to exceed the greater of $.01 or 10% of the
amount of the dividend paid in the prior scal quarter.
Note Payable
e note payable consists of a ve-year note with a vendor
with an original principal amount of $507 and represents the
nancing of prepaid maintenance for telecommunications
equipment. e note payable is payable in monthly install-
ments of principal and interest of $9 through October 16,
2013 and bears interest at 2.88%.
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