NOTE 6 – LONG-TERM DEBT, CAPITAL LEASES AND FINANCING OBLIGATIONS

Long-term debt, capital leases and financing obligations consist of the following:



	March 28,		March 29,
	2015		2014
	(Dollars in thousands)
Revolving Credit Facility, LIBOR-based (a)	$	122,543	$	105,841
Long-term debt	$	122,543	$	105,841
Obligations under capital leases and financing obligations at various interest rates, due in installments through 2045	$	142,053	$	88,091
Mortgage Note Payable, non-interest bearing, secured by warehouse and office land, due in one installment in 2015		0		660
Less – Current portion of long-term debt, capital leases and financing obligations		(8,908)		(7,552)
Long-term capital leases and financing obligations	$	133,145	$	81,199

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(a)

The London Interbank Offered Rate (LIBOR) at March 28, 2015 was .18%.

In June 2011, we entered into a five-year, $175 million Revolving Credit Facility agreement with seven banks (the “Credit Facility”). This Credit Facility amended and restated, in its entirety, the Credit Facility agreement previously entered into by Monro as of July 2005 and amended from time to time. The Credit Facility also provided an accordion feature permitting us to request an increase in availability of up to an additional $75 million.

In December 2012, the Credit Facility was amended to include the following: the committed sum was increased by $75 million to $250 million; the term was extended for another one and a half years, such that the Credit Facility now expires in December 2017; and the $75 million accordion feature was maintained. There were no other changes in terms including those related to covenants or interest rates. There are now six banks participating in the syndication. There was $122.5 million outstanding under the Credit Facility at March 28, 2015. We were in compliance with all debt covenants as of March 28, 2015.

At March 28, 2015 and March 29, 2014, the interest rate was 125 basis points over LIBOR.

Within the Credit Facility, we have a sub-facility of $40 million for the purpose of issuing standby letters of credit. The line requires fees aggregating 1.375% annually of the face amount of each standby letter of credit, payable quarterly in arrears. There was $23.7 million in an outstanding letter of credit at March 28, 2015.

The net availability under the Credit Facility at March 28, 2015 was $103.8 million.

Specific terms of the Credit Facility permit the payment of cash dividends not to exceed 50% of the prior year’s net income, and permit mortgages and specific lease financing arrangements with other parties with certain limitations. Additionally, the Credit Facility is not secured by our real property, although we have agreed not to encumber our real property, with certain permissible exceptions. The agreement also requires the maintenance of specified interest and rent coverage ratios.

Long-term debt, including current portion, had a carrying amount and a fair value of $122.5 million as of March 28, 2015, as compared to a carrying amount and a fair value of $106.5 million as of March 29, 2014. 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 Monro for debt with similar maturities.

In addition, we have financed certain store properties and vehicles with capital leases/financing obligations, which amount to $142.1 million and are due in installments through 2045.

During fiscal 1995, Monro 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 had provided financing for 100% of the cost of the land via a 20-year non-amortizing, non-interest bearing mortgage. The mortgage was paid in full in fiscal 2015.

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



	Capital Leases/
	Financing Obligations
	Aggregate		Imputed		All Other
Year Ending Fiscal March	Amount		Interest		Debt		Total
	(Dollars in thousands)

2016	$	19,075	$	(10,167)			$	8,908
2017		18,601		(9,624)				8,977
2018		18,809		(8,987)	$	122,543		132,365
2019		18,779		(8,275)				10,504
2020		18,810		(7,547)				11,263