(7) Long-Term Debt

Long-term debt consisted of the following as of July 29, 2017 and January 28, 2017:


	July 29,		January 28,
	2017		2017
Term loan	$	135,927	$	136,727
Less discount		(777)		(877)
Less debt issuance costs		(1,323)		(1,146)
		133,827		134,704
Less current portion, net of discount and debt issuance costs		(896)		(983)
Long-term portion	$	132,931	$	133,721

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.

On May 18, 2017, Sportsman’s Warehouse, Inc. entered into an amendment to its term loan. The amendment increased the maximum leverage ratio in each of the remaining quarters by amounts ranging from 0.2x to 1.3x, with an average quarterly increase of 0.75x. As a result of the amendment, the interest rate on the Company’s term loan increased 25 basis points to LIBOR plus 6.25% with a 1.25% LIBOR floor.

As of July 29, 2017 and January 28, 2017, the Term Loan had an outstanding balance of $135,927 and $136,727, respectively. The outstanding amounts as of July 29, 2017 and January 28, 2017 are offset on the condensed consolidated balance sheets by an unamortized discount of $777 and $877, respectively, and debt issuance costs of $1,323 and $1,146, respectively.

During the 13 and 26 weeks ended July 29, 2017, the Company recognized $58 and $100, respectively, of non-cash interest expense with respect to the amortization of the discount. During the 13 and 26 weeks ended July 29, 2017, the Company recognized $92 and $168, respectively, of non-cash interest expense with respect to the amortization of the debt issuance costs.

During the 13 and 26 weeks ended July 30, 2016, the Company recognized $67 and $295 of non-cash interest expense with respect to the amortization of the discount. During the 13 and 26 weeks ended July 30, 2016, the Company recognized $88 and $174, 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 and 26 weeks ended July 29, 2017, the Company made the required quarterly payments on the Term Loan of $400 each quarter.

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 July 29, 2017, 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.