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Long-Term Debt (Notes) | 3 Months Ended
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Nov. 25, 2017
Debt Disclosure [Abstract] |
Long-Term Debt | Long-Term Debt The components of long-term debt are as follows:
(In thousands) |  | November 25, 2017 |  | August 26, 2017
ABL |  | $ | — |  |  | $ | — |
Term Loan |  | 279,750 |  |  | 284,000 |
Gross Long-term debt, excluding issuance costs |  | 279,750 |  |  | 284,000 |
Less: debt issuance cost, net |  | (8,987 | ) |  | (9,424 | )
Long-term debt, net of issuance costs |  | 270,763 |  |  | 274,576 |
Less: current maturities |  | (2,342 | ) |  | (2,850 | )
Long-term debt, less current maturities |  | $ | 268,421 |  |  | $ | 271,726 |
On November 8, 2016, we entered into a $125.0 million ABL agreement and a $300.0 million Term Loan with JPMorgan Chase. Under the ABL agreement, we have a five year credit facility on a revolving basis, subject to availability under a borrowing base consisting of eligible accounts receivable and eligible inventory. The line is available for issuance of letters of credit to a specified limit of $10.0 million. We pay a customary commitment fee based upon the amount of the facility available but unused. Under the agreement, we can elect to base the interest rate on various base rates plus specific spreads depending on the amount of borrowings outstanding. As of November 25, 2017 no funds were drawn on the ABL agreement other than an outstanding $0.2 million letter of credit. As discussed in Note 1: Basis of Presentation - Subsequent Events, $19.7 million was drawn on the ABL as part of an amendment to our Credit Agreement and used to prepay a portion of our Term Loan B prior to the repricing of that loan. We currently pay interest on ABL borrowings at a floating rate based upon LIBOR plus 1.25%. Under the Term Loan agreement, we have a seven year credit facility originally repayable in quarterly installments in an aggregate amount equal to 1.0% of the original amount of the Term Loan on March 31, June 30 and September 30, 2017; 1.25% each calendar quarter end thereafter; with the balance payable on November 8, 2023. We have made voluntary prepayments towards the outstanding Term Loan B balance. These prepayments have been designated as applying to the next regularly scheduled payments. As of November 25, 2017, these designations provide an opportunity to defer principal payments on the term loan, at our option, until September 30, 2018. As noted in Note 1: Basis of Presentation - Subsequent Events, on December 8, 2017 we finalized an amendment to our Credit Agreement to reprice $260 million of Term Loan B debt. Prior to the repricing, we made an additional $19.7 million prepayment on the Term Loan B. That prepayment extended the opportunity to defer payment, at our option, until December 31, 2019. There are mandatory prepayments for proceeds of new debt, sale of significant assets or subsidiaries, and excess cash flow as those terms are defined in the agreement. Incremental term loans of up to $125.0 million are available if certain financial ratios and other conditions are met. Under the Term Loan agreement, we can elect to base the interest rate on various base rates plus specific spreads. The interest rate as of November 25, 2017, before consideration of the hedge and prior to the amendment, was 5.7%. The Term Loan agreement and the ABL agreement both contain various financial covenants. As of November 25, 2017, we are in compliance with all financial covenants of the Credit Agreement. The ABL and Term Loan are guaranteed by Winnebago Industries, Inc. and all material direct and indirect domestic subsidiaries, and are secured by a security interest in substantially all of our assets, except minor excluded assets. As of November 25, 2017, $9.0 million of debt issuance costs, net of amortization of $2.0 million, were recorded as a direct deduction from long-term debt, $1.4 million from the current portion and $7.6 million from the long-term portion. Unamortized debt issuance costs of $0.1 million related to the prior Amended Credit Agreement were expensed in the three months ended November 26, 2016. Aggregate contractual maturities of debt in future fiscal years, are as follows as of November 25, 2017:
(In thousands) |  | Amount
Year: | 2018 |  | — |
| 2019 |  | 15,000 |
| 2020 |  | 15,000 |
| 2021 |  | 15,000 |
| 2022 |  | 15,000 |
| 2023 |  | 15,000 |
| 2024 |  | 204,750 |
| Total debt |  | $ | 279,750 |

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- Definition The entire disclosure for long-term debt. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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