Jack In The Box 2012 Annual Report Download - page 54

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The detail of our long-term debt at the end of each fiscal year is as follows ( in thousands):


Revolver, variable interest rate based on an applicable margin plus LIBOR, 2.89% at September 30, 2012
$250,000
$275,000
Term loan, variable interest rate based on an applicable margin plus LIBOR, 2.74% at September 30, 2012
165,000
185,000
FFE revolver
—
1,160
Capital lease obligations, 10.00% weighted average interest rate at September 30, 2012
6,228
7,338
421,228
468,498
Less current portion
(15,952)
(21,148)
$405,276
$447,350
Credit facility — At September 30, 2012, our credit facility was comprised of (i) a $400.0 million revolving credit facility and (ii) a term loan maturing on
June 29, 2015, both bearing interest at London Interbank Offered Rate (“LIBOR”) plus 2.50% as of September 30, 2012. As part of the credit agreement, we
could also 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 required 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 were based on a financial leverage ratio, as defined in the credit agreement dated June 29, 2010. At September 30, 2012,
we had borrowings under the revolving credit facility of $250.0 million, $165.0 million outstanding under the term loan and letters of credit outstanding of
$30.9 million.
Collateral — The Company’s obligations under the credit facility were secured by first priority liens and security interests in the capital stock, partnership
and membership interests owned by the Company and (or) its subsidiaries, and any proceeds thereof, subject to certain restrictions set forth in the credit
agreement. Additionally, there was a negative pledge on all tangible and intangible assets (including all real and personal property) with customary exceptions
as reflected in the credit agreement.
Covenants — We were 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, dividend payments and requirements to maintain certain financial ratios.
FFE credit facility — In January 2011, we entered into an $80.0 million Senior Secured Revolving Securitization Facility (“FFE Facility”) with a third party
to assist in funding our franchisee lending program. The FFE Facility was a 12-month revolving loan and security agreement bearing interest at the lender’s
cost of funds plus a weighted-average applicable margin. The revolving period expired in June 2012 and there were no borrowings under the facility at
September 30, 2012. Refer to Note 15, Variable Interest Entities, for additional information regarding FFE.
Future cash payments — Scheduled principal payments on our long-term debt outstanding at September 30, 2012 for each of the next five fiscal years are as
follows (in thousands):
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
2013
$15,952
2014
$30,898
2015
$370,866
2016
$900
2017
$863
We may make voluntary prepayments of the loans under the revolving credit facility and term loan at any time without premium or penalty. Specific events
such as asset sales, certain issuances of debt and insurance and condemnation recoveries, may trigger a mandatory prepayment.
Subsequent to the end of the fiscal year, we refinanced our credit facility. A portion of the proceeds from the refinancing were used to pay all borrowings
outstanding under the existing facility at September 30, 2012. Refer to Note 21, Subsequent Events, for information regarding the new facility.
Capitalized interest — We capitalize interest in connection with the construction of our restaurants and other facilities. Interest capitalized in 2012 was $0.4
million, and $0.3 million in both 2011 and 2010.
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