LONG-TERM DEBT AND CAPITAL LEASE OBLIGATIONS

Long-Term Debt

Long-term debt, net consists of the following:



	September 26, 2015			December 27, 2014
	(in thousands)
Term loans	$	395,000		$	378,000
Revolving credit facility	429,871			375,536
Other long-term debt	196			214
Total debt	825,067			753,750
Less: current portion of long-term debt	(15,196		)	(31,714		)
Long-term debt	809,871			722,036
Debt discount and debt issuance costs ⁽¹⁾	(7,215		)	(5,401		)
Long-term debt, net	$	802,656		$	716,635

⁽¹⁾During the three months ended June 27, 2015, the Company adopted ASU 2015-03 and reclassified unamortized debt issuance costs from other assets to long-term debt, net and capital leases. See Note 1, “Basis of Presentation” for further discussion.

In April 2015, the Company amended and restated the $970M Credit Facility, creating a $1.3 billion facility ($1.3B Credit Facility) that provides for a $400.0 million term loan facility and a $900.0 million multi-currency revolving facility. The term loan facility matures in 20 quarterly installments with the last installment due April 22, 2020. The revolving facility matures on April 22, 2020 and requires no scheduled payment before that date.

The interest rates applicable to term loans and revolving loans under our credit agreement are, at our option, equal to either the alternate base rate (which is the higher of (1) the prime rate, (2) the federal funds rate plus 0.5% or (3) the one-month adjusted LIBOR rate plus 1%), or the adjusted LIBOR rate plus an interest rate margin based upon the our leverage ratio. As of September 26, 2015 and December 27, 2014, the weighted average interest rate on the Company’s debt was 1.31% and 1.42%, respectively.

The $1.3B Credit Facility includes certain customary representations and warranties, events of default, notices of material adverse changes to the Company’s business, and negative and affirmative covenants. As of September 26, 2015, the Company was compliant with all covenants.

At September 26, 2015 and December 27, 2014, the Company had $4.9 million and $5.0 million in outstanding letters of credit, respectively.

Capital Lease Obligations

The Company acquired a build-to-suit lease as part of its acquisition of Argenta and BioFocus. In accordance with accounting guidance applicable to entities involved with the construction of an asset that will be leased when the construction is completed, the Company was considered the owner, for accounting purposes, of this property during the construction period. Accordingly, the Company recorded an asset and a corresponding financing obligation on its consolidated balance sheet for the amount of total project costs incurred related to the construction in progress for this property through completion of the construction period. Upon completion of the construction during the three months ended June 27, 2015, the Company determined that it was no longer considered the owner of the property because it did not have continuing involvement. Consequently, the Company recorded a successful sale leaseback and derecognized the property and the associated financing obligation from the Company’s consolidated balance sheet and recorded a capital lease asset and a corresponding liability of $35.8 million.

The Company’s capital lease obligations amounted to $34.5 million and $1.0 million at September 26, 2015 and December 27, 2014, respectively.