LONG-TERM DEBT AND CAPITAL LEASE OBLIGATIONS

Long-Term Debt

Long-term debt, net consists of the following:



	December 26, 2015			December 27, 2014
	(in thousands)
Term loans	$	390,000		$	378,000
Revolving credit facility	446,041			375,536
Other long-term debt	193			214
Total debt	836,234			753,750
Less: current portion of long-term debt	(15,193		)	(31,714		)
Long-term debt	821,041			722,036
Debt discount and debt issuance costs ⁽¹⁾	(6,805		)	(5,401		)
Long-term debt, net	$	814,236		$	716,635

⁽¹⁾During the second quarter of 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 the Company’s 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 Company’s leverage ratio. As of December 26, 2015 and December 27, 2014, the weighted average interest rate on the Company’s debt was 1.33% 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. These covenants include (1) maintenance of a ratio of consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) less capital expenditures to consolidated cash interest expense, for any period of four consecutive fiscal quarters, of no less than 3.5 to 1.0 as well as (2) maintenance of a ratio of consolidated indebtedness to consolidated EBITDA for any period of four consecutive fiscal quarters, of no more than 3.5 to 1.0. As of December 26, 2015, the Company was compliant with all covenants. The Company’s obligations under the credit agreement are collateralized by substantially all of the Company’s assets.

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

Principal maturities of existing debt for the periods set forth in the table below, are as follows:



Fiscal Year	Principal
	(in thousands)
2016	$	15,193
2017	22,500
2018	32,500
2019	50,000
2020	716,041
Total	$	836,234

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 second quarter of 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 $33.6 million and $1.0 million as of December 26, 2015 and December 27, 2014, respectively.