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Long-Term Debt

12 Months Ended

Mar. 31, 2012

NOTE 7 — LONG-TERM DEBT

Long-term debt consists of the following:


	March 31, 2012		March 26, 2011
	(Dollars in thousands)
Revolving Credit Facility, LIBOR-based(a)	$	5,000	$	10,062
Mortgage Note Payable, non-interest bearing, secured by warehouse and office land, due in one installment in 2015		660		660
Obligations under capital leases at various interest rates, secured by store properties and certain equipment, due in installments through 2042		49,412		44,301

		55,072		55,023
Less – Current portion		3,908		13,033

	$	51,164	$	41,990

(a)	The London Interbank Offered Rate (LIBOR) at March 31, 2012 was .24%.

In June 2011, the Company entered into a five-year, $175 million Revolving Credit Facility agreement with seven banks. The Credit Facility amends and restates, in its entirety, the Credit Facility agreement previously entered into by the Company as of July 2005 and amended from time to time. The Credit Facility also provides an accordion feature permitting the Company to request an increase in availability of up to an additional $75 million. There was $5.0 million outstanding at March 31, 2012. The facility expires in June 2016. The Company was in compliance with all debt covenants at March 31, 2012.

The interest rate on the facility fluctuated between 50 (prior to amendment) and 100 basis points over LIBOR during fiscal year 2012. At March 31, 2012, the interest rate was 100 basis points over LIBOR.

Specific terms of the new Credit Facility permit the payment of cash dividends not to exceed 50% of the preceding year’s net income, and increase and liberalize certain thresholds, while the net worth financial covenant existent under the 2005 Credit Facility has been removed. Other terms of the Credit Facility are generally consistent with the 2005 Credit Facility including requiring the maintenance of specified interest and rent coverage ratios and permitting mortgages and specific lease financing arrangements with other parties with certain limitations.

The Credit Facility is not secured by the Company’s real property, although the Company has agreed not to encumber its real property, with certain permissible exceptions.

Within the aforementioned $175 million Revolving Credit Facility, the Company has available a sub-facility of $40 million for the purpose of issuing standby letters of credit. The line requires fees aggregating 1.125% annually of the face amount of each standby letter of credit, payable quarterly in arrears. There was $18.0 million in an outstanding letter of credit at March 31, 2012.

Long-term debt, including current portion, had a carrying amount of $5.7 million and a fair value of $5.6 million as of March 31, 2012, as compared to a carrying amount of $10.7 million and a fair value of $10.7 million as of March 26, 2011. The fair value of long-term debt was estimated based on discounted cash flow analyses using either quoted market prices for the same or similar issues, or the current interest rates offered to the Company for debt with similar maturities.

In addition, the Company has financed certain store properties and vehicles with capital leases, which amount to $49.4 million and are due in installments through 2042.

During fiscal 1995, the Company purchased 12.7 acres of land for $.7 million from the City of Rochester, New York, on which its office/warehouse facility is located. The City has provided financing for 100% of the cost of the land via a 20-year non-interest bearing mortgage, all due and payable in 2015.

Aggregate debt maturities over the next five years are as follows:


	Capital Leases
Year Ending Fiscal March	Aggregate Amount		Imputed Interest			All Other Debt		Total
	(Dollars in thousands)
2013	$	8,192	$	(4,284	)			$	3,908
2014		8,191		(3,975	)				4,216
2015		7,737		(3,638	)	$	660		4,759
2016		6,988		(3,295	)				3,693
2017		6,445		(2,972	)		5,000		8,473