Debt, Capital Lease Obligations and Other Financing

Debt and capital lease obligations as of September 29, 2018 and September 30, 2017, consisted of the following (in thousands):



	2018			2017
4.05% Senior Notes, due June 15, 2025	$	100,000		$	—
4.22% Senior Notes, due June 15, 2028	50,000			—
5.20% Senior Notes, due June 15, 2018	—			175,000
Borrowings under the credit facility	—			108,000
Capital lease and other financing obligations	39,857			30,901
Unamortized deferred financing fees	(1,240		)	(794		)
Total obligations	188,617			313,107
Less: current portion	(5,532		)	(286,934		)
Long-term debt and capital lease obligations, net of current portion	$	183,085		$	26,173

On June 15, 2018, the Company entered into a Note Purchase Agreement (the “2018 NPA”) pursuant to which it issued an aggregate of $150.0 million in principal amount of unsecured senior notes, consisting of $100.0 million in principal amount of 4.05% Series A Senior Notes, due on June 15, 2025, and $50.0 million in principal amount of 4.22% Series B Senior Notes, due on June 15, 2028 (collectively, the “2018 Notes”), in a private placement. The 2018 NPA includes customary operational and financial covenants with which the Company is required to comply, including, among others, maintenance of certain financial ratios such as a total leverage ratio and a minimum interest coverage ratio. Such covenants are generally similar to those in the Note Purchase Agreement related to the 2011 Notes (as defined below). The 2018 Notes may be prepaid in whole or in part at any time, subject to payment of a make-whole amount; interest on the 2018 Notes is payable semiannually. At September 29, 2018, the Company was in compliance with the covenants under the 2018 NPA.

In connection with the issuance of the 2018 Notes, on June 15, 2018, the Company repaid, on maturity $175.0 million in principal amount of its 5.20% Senior Notes (the "2011 Notes").

The Company also has a senior unsecured revolving credit facility (the "Credit Facility"), with a $300.0 million maximum commitment that expires on July 5, 2021. The Credit Facility may be further increased to $500.0 million, generally by mutual agreement of the Company and the lenders, subject to certain customary conditions. During fiscal 2018, the highest daily borrowing was $208.0 million; the average daily borrowings were $59.8 million. The Company borrowed $683.5 million and repaid $791.5 million of revolving borrowings under the Credit Facility during fiscal 2018. The Company was in compliance with all financial covenants relating to the Credit Agreement, which are generally consistent with those in the Note Purchase Agreements discussed above. The Company is required to pay a commitment fee on the daily unused revolver credit commitment based on the Company's leverage ratio; the fee was 0.175% as of September 29, 2018.

The aggregate scheduled maturities of the Company’s debt obligations as of September 29, 2018, are as follows (in thousands):



2019	$	—
2020	—
2021	—
2022	—
2023	—
Thereafter	150,000
Total	$	150,000

The aggregate scheduled maturities of the Company’s capital leases and other financing obligations as of September 29, 2018, are as follows (in thousands):



2019	$	5,532
2020	2,963
2021	1,515
2022	1,101
2023	696
Thereafter	28,050
Total	$	39,857

The Company's weighted average interest rate on capital lease obligations was 4.87% and 4.51% as of September 29, 2018 and September 30, 2017, respectively.

The Neenah Design Center capital lease commenced, and resulted in a non-cash transaction of approximately $15.7 million, during fiscal 2017.

The "Thereafter" line of the scheduled maturities of capital lease obligations table above includes an $8.8 million non-cash financing obligation related to a failed sale-leaseback of a building shell in Guadalajara, Mexico that was capitalized in fiscal 2014. This obligation will be increased by interest expense and land rent expense, and reduced by contractual payments during the 20-year lease term. As of September 30, 2017, the balance of the related financing obligation totaled $8.6 million. At the end of the 20-year lease term, the net book value of the assets will approximate the balance of the financing obligation. If the Company does not exercise both renewal options or exercises the first but not the second, it would record a loss related to the disposal of the underlying assets in operating results of $4.1 million in fiscal 2024 or $0.8 million in fiscal 2029.

Construction on a second manufacturing facility in Guadalajara, Mexico began in fiscal 2018, resulting in an additional $7.2 million of non-cash financing obligations that were capitalized as of September 29, 2018. This obligation will be increased as construction costs are incurred and also by interest expense and land rent expense, and reduced by contractual payments during the 25-year lease term. This amount is included in the "Thereafter" line of the scheduled maturities of capital lease obligations table above, as well as in long-term debt and capital lease obligations, net of current portion, on the accompanying Consolidated Balance Sheets as of September 29, 2018. The lease contains a 15-year base lease agreement with two 5-year renewal options.

The future minimum payments under the remainder of the two facilities in Guadalajara, leased under 10-year and 15-year base lease agreements, as well as the two 5-year renewal options for each lease are as follows (in thousands):



2019	$	3,328
2020	4,301
2021	4,409
2022	4,520
2023	4,632
Thereafter (2024 - 2044, through both five-year renewal options for each building)	100,159
Total	$	121,349