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Debt | 12 Months Ended
--- | ---
Sep. 29, 2018
Debt Disclosure [Abstract] |
Debt | Debt Our short and long term debt as of September 29, 2018 and September 30, 2017 is as follows:
| 2018 |  | 2017
| Rate |  | Balance |  | Rate |  | Balance
(In thousands) |  |  |  |  |  |  |
J.P. Morgan Chase Bank, N.A Secured Term Loan (the "New Term Loan") (1) | 4.8 | % |  | $ | 40,000 |  |  | — | % |  | $ | — |
J.P. Morgan Chase Bank, N.A Secured Credit Facility (the "Credit Facility") (2) | — | % |  | — |  |  | — | % |  | — |
Gordon Brothers Finance Company Secured Term Loan (the "Prior Term Loan") (3) | — | % |  | — |  |  | 10.7 | % |  | 40,000 |
Unamortized debt issuance costs (4) |  |  | (236 | ) |  |  |  | (400 | )
Total indebtedness |  |  | 39,764 |  |  |  |  | 39,600 |
Less short term portion |  |  | (6,667 | ) |  |  |  | — |
Long term debt |  |  | $ | 33,097 |  |  |  |  | $ | 39,600 |
(1) | Bears interest at a variable rate equal to an adjusted LIBOR plus 2.25% and is payable quarterly. Due in October 2021, with quarterly principal payments beginning in July 2019.
(2) | Allows the Company to borrow up to $80.0 million restricted to the value of the borrowing base which is based on the value of inventory and accounts receivable and is subject to monthly redetermination. Also includes up to $10.0 million for the issuance of letters of credit and up to $8.0 million for swing line loans. The Credit Facility matures in October 2021 and may be drawn as Commercial Bank Floating Rate Loans (at the higher of prime rate or adjusted LIBOR plus 2.50%) or Eurocurrency Loans (at LIBOR plus an applicable margin). The unused portion is subject to an annual commitment fee of 0.2%.
(3) | In July 2018, all outstanding principal, accrued interest and fees were paid in full and the Prior Term Loan was terminated. While outstanding, it bore interest at LIBOR plus 9.5%.
(4) | Debt issuance costs are recorded as debt discount and recorded as interest expense over the term of the agreement.
The Credit Facility and the New Term Loan require the Company to maintain a consolidated fixed charge ratio of at least 1.0, restrict distribution of dividends unless certain conditions are met, such as having a fixed charge ratio of at least 1.15, and require financial statement reporting and delivery of borrowing base certificates. As of September 29, 2018 and September 30, 2017, the Company was in compliance with all financial covenants. Obligations under the New Term Loan and the Credit Facility are collateralized by eligible inventory and accounts receivable of the Company as well as the Company's intellectual property including patents and trademarks. As of September 29, 2018 and September 30, 2017, the Company did not have any outstanding borrowings and $4.5 million and $4.4 million, respectively, in undrawn letters of credit that reduce the availability under the Credit Facility. As of September 29, 2018, the Company had $39.8 million outstanding on the New Term Loan.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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