Shake Shack 2016 Annual Report Download - page 64

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Table of Contents
For fiscal 2014 , net cash used in investing activities was $28.5 million compared to $16.2 million for fiscal 2013 , an increase of $12.3 million . The increase was
due to an increase in capital expenditures to construct new domestic company-operated Shacks in the period.
Financing Activities
For fiscal 2015 , net cash provided by financing activities was $61.4 million compared to $4.5 million for fiscal 2014 , an increase of $56.9 million . This increase
was primarily due to $109.3 million of proceeds from the issuance of Class A common stock (net of underwriting discounts and offering costs) sold in the IPO and
$4.0 million of borrowings under the revolving credit facility, offset by $36.0 million of payments on the Revolving Credit Facility, a $15.9 million decrease in
member distributions and $4.6 million of e mployee withholding taxes paid related to net settled equity awards.
For fiscal 2014 , net cash provided by financing activities was $4.5 million compared to $0.3 million for fiscal 2013 , an increase of $4.2 million primarily due to
increased borrowings under our Revolving Credit Facility of $32.0 million , offset by increased member distributions of $27.1 million and deferred financing fees
of $0.4 million .
Revolving Credit Facility
We maintain a Revolving Credit Facility that provides for a total revolving commitment of $20.0 million , which can be increased to $50.0 million at our election.
The Revolving Credit Facility will mature and all amounts outstanding will be due and payable five years from the effective date. The Revolving Credit Facility
permits the issuance of letters of credit upon our request of up to $10.0 million . Borrowings under the facility bear interest at either: (i) LIBOR plus a percentage
ranging from 2.5% to 3.5% or (ii) the prime rate plus a percentage ranging from 0.0% to 1.0% , depending on the type of borrowing made under the facility. As of
December 30, 2015 , there were no amounts outstanding under the Revolving Credit Facility. We had $19.9 million of availability as of December 30, 2015 , after
giving effect to $0.1 million in outstanding letters of credit.
The Revolving Credit Facility is secured by a first-priority security interest in substantially all of the assets of SSE Holdings and the guarantors. The obligations
under the Revolving Credit Facility are guaranteed by each of SSE Holdings' wholly-owned domestic subsidiaries (with certain exceptions).
The Revolving Credit Facility contains a number of covenants that, among other things, limit our ability to, subject to specified exceptions, incur additional debt;
incur additional liens and contingent liabilities; sell or dispose of assets; merge with or acquire other companies; liquidate or dissolve ourselves; pay dividends or
make distributions; engage in businesses that are not in a related line of business; make loans, advances or guarantees; engage in transactions with affiliates; and
make investments. In addition, the Revolving Credit Facility contains certain cross-default provisions. We are required to maintain a specified consolidated fixed-
charge coverage ratio and a specified funded net debt to adjusted EBITDA ratio, both as defined under the Revolving Credit Facility. As of December 30, 2015 ,
we were in compliance with all covenants.
Shake Shack Inc. Form 10-K | 62