Debt Obligations

Long-term debt consists of the following components (in thousands):



	December 31, 2016			December 26, 2015
Term loan	$	68,250		$	95,500
Revolving credit facility	83,000			—
Debt issuance costs	(533		)	(492		)
Less: current portion of debt	(3,500		)	—
Long-term debt, net	$	147,217		$	95,008

On June 30, 2016, the Company entered into a $180.0 million new senior secured credit facility (the “New Credit Facility”), which replaced the Company’s Second Amended and Restated Credit Facility dated March 18, 2015. The New Credit Facility includes a term loan facility in an aggregate amount of $70.0 million and a revolving credit facility up to an aggregate amount of $110.0 million. The Company used the proceeds from the New Credit Facility and cash on hand to refinance $85.5 million of indebtedness under the Company’s March 2015 debt facility and to pay a dividend of $83.3 million to its shareholders. Borrowings under the term loan facility bear interest, payable quarterly, at our option, at the base rate plus a margin (1.00% to 2.00%, dependent on the Company’s reported leverage ratio) or LIBOR plus a margin (2.00% to 3.00%, dependent on the Company’s reported leverage ratio). The New Credit Facility matures in June 2021. As of December 31, 2016, the term loan facility had an outstanding balance of $68.3 million that bears interest at 3.27%.

The revolving credit facility bears interest, payable quarterly, at our option, at the base rate plus a margin or LIBOR plus a margin, with all unpaid amounts due at maturity in June 2021. Any unused portion of the revolving credit facility bears a commitment fee (0.375% to 0.50%, dependent on the Company’s reported leverage ratio). As of December 31, 2016, the revolving credit facility had an outstanding balance of $83.0 million, which bears interest at 3.27%. During the fiscal year ended December 31, 2016, the Company made payments on the revolving credit facility totaling $12.0 million.

In conjunction with the New Credit Facility, the Company evaluated the refinancing of the March 2015 Second Amended and Restated Credit Facility and determined $90.0 million was accounted for as a debt modification and $90.0 million was new debt issuance. The Company incurred $1.3 million in financing costs of which $0.1 million was expensed and $1.2 million was capitalized and is being amortized using the effective interest rate method. Previously capitalized financing costs of $0.2 million were expensed as a result of the refinancing during the current period.

In March 2015, the Company amended and restated the senior secured credit facility (the “Second Amended and Restated Credit Facility”). In connection with the Second Amended and Restated Credit Facility, the facility size was increased from $107.5 million to $137.5 million and was comprised of a $132.5 million term loan and a $5.0 million revolving credit facility. The Company used a portion of the proceeds from the Second Amended and Restated Credit Facility and cash on hand to pay a dividend of $48.0 million to its shareholders. Borrowings under the facility bore interest, payable quarterly, at our option, at the base rate plus a margin (1.50% to 2.25%, dependent on the Company’s reported leverage ratio) or LIBOR plus a margin (2.50% to 3.25%, dependent on our reported leverage ratio). The Second Amended and Restated Credit Facility had a maturity date of March 2020.

In conjunction with the Second Amended and Restated Credit Facility, the Company evaluated the refinancing of the amended facility and determined substantially all of the $132.5 million was accounted for as a debt modification. The Company incurred $728,000 in financing costs of which $528,000 was expensed and $200,000 was capitalized and is being amortized using the effective interest rate method.

In June 2015, in connection with the IPO, the Company used a portion of the IPO proceeds to make a $32.0 million prepayment of the outstanding principle balance of the Second Amended and Restated Credit Facility. As a result of the prepayment, the Company expensed $172,000 of previously capitalized financing costs, which are included in Other (income) expense in the Consolidated Statements of Operations. As of December 26, 2015, the amended and restated credit facility had an outstanding balance of $95.5 million that bore interest at 2.83%.

The Second Amended and Restated Credit Facility included a $5.0 million revolver. At December 26, 2015, there were no amounts outstanding on the line of credit. The Second Amended and Restated Credit Facility also included a $3.0 million line of credit which the Company may utilize to issue letters of credit. The letter of credit facility matures in March 2020. At December 26, 2015, there were no letters of credit outstanding.

The credit facility is secured by substantially all assets of the Company and requires compliance with certain financial and non-financial covenants. As of December 31, 2016, the Company was in compliance with all financial covenants.

As of December 31, 2016, the scheduled principle payments on debt were as follows (in thousands):



Fiscal year 2017	$	3,500
Fiscal year 2018	3,500
Fiscal year 2019	2,625
Fiscal year 2020	3,500
Fiscal year 2021	138,125
Total	$	151,250