(7) Long-Term Debt

Long-term debt consisted of the following as of October 29, 2016 and January 30, 2016:


	October 29,		January 30,
	2016		2016
Term loan	$	137,127	$	158,000
Less discount		(920)		(1,288)
Less debt issuance costs		(1,254)		(1,696)
		134,953		155,016
Less current portion, net of discount and debt issuance costs		(983)		(8,683)
Long-term portion	$	133,970	$	146,333

Term Loan

The Company has a $160,000 senior secured term loan facility (“Term Loan”) with a financial institution. The Term Loan was issued at a price of 99% of the aggregate principal amount and has a maturity date of December 3, 2020.

As of October 29, 2016 and January 30, 2016, the Term Loan had an outstanding balance of $137,127 and $158,000, respectively. The outstanding amounts as of October 29, 2016 and January 30, 2016 are offset on the consolidated balance sheets by an unamortized discount of $920 and $1,288, respectively, and debt issuance costs of $1,254 and $1,696, respectively.

During the 13 weeks and 39 weeks ended October 29, 2016, the Company recognized $74 and $369, respectively, of non-cash interest expense with respect to the amortization of the discount. During the 13 weeks and 39 weeks ended October 29, 2016, the Company recognized $268 and $442, respectively, of non-cash interest expense with respect to the amortization of the debt issuance costs.

During the 13 weeks and 39 weeks ended October 31, 2015, the Company recognized $67 and $200, respectively, of non-cash interest expense with respect to the amortization of the discount. During the 13 weeks and 39 weeks ended October 31, 2015, the Company recognized $122 and $368, respectively, of non-cash interest expense with respect to the amortization of the debt issuance costs.

As part of the Term Loan agreement, there are a number of financial and non-financial debt covenants. The financial covenants include a net leverage ratio and an interest coverage ratio to be measured on a trailing twelve month basis.

During the 13 weeks ended October 29, 2016, the Company made a required quarterly payment on the Term Loan of $400.

During the 39 weeks ended October 29, 2016, the Company made a mandatory prepayment of $7,674 on the Term Loan and a voluntary prepayment of $12,000 on the Term Loan in addition to the required payments totaling $1,200. As a result of the voluntary prepayment, the Company incurred a prepayment penalty of $150.

Restricted Net Assets

The provisions of the Term Loan and the Revolving Line of Credit restrict all of the net assets of the Company’s consolidated subsidiaries, which constitute all of the net assets on the Company’s condensed consolidated balance sheet as of October 29, 2016, from being used to pay any dividends without prior written consent from the financial institutions party to the Company’s Term Loan and Revolving Line of Credit.