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Long-Term Debt | 12 Months Ended
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Jan. 02, 2016
Debt Disclosure [Abstract] |
Long-Term Debt | Note 6 – Long-Term Debt Long-term debt consists of the following:
(In thousands) | January 2, 2016 |  |  | January 3, 2015 |
Senior secured revolving credit facility, due January 2020 | $ |  | 394,982 |  |  | $ |  | 403,201 |
6.625% Senior Notes due December 2016 |  |  | — |  |  |  |  | 50,000 |
Senior secured term loan, due January 2020 |  |  | 34,842 |  |  |  |  | 46,989 |
Capital lease obligations (Note 9) |  |  | 58,599 |  |  |  |  | 64,420 |
Other, 2.61% - 9.25%, due 2016 - 2020 |  |  | 6,558 |  |  |  |  | 5,658 |
|  |  | 494,981 |  |  |  |  | 570,268 |
Less current portion |  |  | 19,003 |  |  |  |  | 19,758 |
Total long-term debt | $ |  | 475,978 |  |  | $ |  | 550,510 |
In January 2015, SpartanNash Company and certain of its subsidiaries amended its secured revolving credit facility. The principal changes of the amendment were to reduce the Base and Eurodollar interest rates by 0.25% and to extend the maturity date of the agreement, which was set to expire on November 19, 2018, to January 9, 2020. The amended credit facility (the “Credit Agreement”) provides for borrowings of $1.0 billion, consisting of three tranches: a $900 million secured revolving credit facility (Tranche A), a $40 million secured revolving credit facility (Tranche A-1), and a $60 million term loan (Tranche A-2). The Company has the ability to increase the size of the Credit Agreement by an additional $400 million, subject to certain conditions in the Credit Agreement. The Company’s obligations under the related Credit Agreement are secured by substantially all of the Company’s personal and real property. The Company may repay all loans in whole or in part at any time without penalty. Availability under the Credit Agreement is based upon advance rates on certain asset categories owned by the Company, including, but not limited to the following: inventory, accounts receivable, real estate, prescription lists, cigarette tax stamps, and rolling stock. The Credit Agreement imposes certain requirements, including: limitations on dividends and investments (including distributions to subsidiaries designated as unrestricted subsidiaries), limitations on the Company’s ability to incur debt, make loans, acquire other companies, change the nature of the Company’s business, enter a merger or consolidation, or sell assets. These requirements can be more restrictive depending upon the Company’s Excess Availability as defined under the Credit Agreement. Borrowings under the three tranches of the credit facility bear interest at the Company’s option as either Eurodollar loans or Base Rate loans, subject to a grid based upon excess availability, as defined in the Credit Agreement. As of January 2, 2016, the interest rate terms are as follows:
Credit |  | Outstanding |  |  |  |  |  |
Facility |  | as of |  |  |  |  |  |
Tranche |  | January 2, 2016 |  |  | Eurodollar Rate |  | Base Rate
Tranche A |  | $ |  | 360,973 |  |  | LIBOR plus 1.50% to 2.00% |  | Greater of: | (i) the Federal Funds Rate plus 1.00% to 1.50%
|  |  |  |  |  |  |  |  |  | (ii) the Eurodollar Rate plus 1.50% to 2.00%
|  |  |  |  |  |  |  |  |  | (iii) the prime rate plus 0.50% to 1.00%
Tranche A-1 |  | $ |  | 34,008 |  |  | LIBOR plus 2.75% to 3.25% |  | Greater of: | (i) the Federal Funds Rate plus 2.25% to 2.75%
|  |  |  |  |  |  |  |  |  | (ii) the Eurodollar Rate plus 2.75% to 3.25%
|  |  |  |  |  |  |  |  |  | (iii) the prime rate plus 1.75% to 2.25%
Tranche A-2 |  | $ |  | 34,843 |  |  | LIBOR plus 5.50% |  | Greater of: | (i) the Federal Funds Rate plus 5.00%
|  |  |  |  |  |  |  |  |  | (ii) the Eurodollar Rate plus 5.50%
|  |  |  |  |  |  |  |  |  | (iii) the prime rate plus 4.50%
The Company also incurs an unused line of credit fee on the unused portion of the loan commitments at a rate ranging from 0.25% to 0.375%. As of January 2, 2016 and January 3, 2015, the secured revolving credit facilities and senior secured term loan had total outstanding borrowings of $429.8 million and $450.2 million, respectively. The Credit Agreement requires that the Company maintain excess availability of 10% of the borrowing base, as defined in the Credit Agreement. The Company is in compliance with all financial covenants as of January 2, 2016 and had excess availability after the 10% requirement of $334.3 million and $406.8 million at January 2, 2016 and January 3, 2015, respectively. The credit facility provides for the issuance of letters of credit, of which $11.1 million and $11.5 million were outstanding as of January 2, 2016 and January 3, 2015, respectively. In November 2015, the Company called for redemption all of the outstanding $50.0 million aggregate principal amount of the 6.625% Senior Notes due December 2016 (the “Notes”). The Company redeemed the Notes for cash, using borrowings under its revolving credit facility, on December 15, 2015. Notes called for redemption became due and payable on the redemption date at a cash redemption price of 101.65625% of the principal amount of the Notes, plus accrued and unpaid interest. A loss on debt extinguishment of $1.2 million was incurred consisting of the redemption premium and the write-off of unamortized issuance costs. As a result of the redemption, the Company expects to reduce annual interest expense by approximately $2.0 million, assuming no future interest rate increases. The weighted average interest rate for all borrowings, including loan fee amortization, was 3.90% for the fiscal year ended January 2, 2016. At January 2, 2016, aggregate annual maturities and scheduled payments of long-term debt are as follows:
(In thousands) |  |  |  |  |  |  |
Fiscal Year |  |  |  |  |  |  |
2016 |  |  |  | $ |  | 19,003 |
2017 |  |  |  |  |  | 18,906 |
2018 |  |  |  |  |  | 20,231 |
2019 |  |  |  |  |  | 12,379 |
2020 |  |  |  |  |  | 399,778 |
Thereafter |  |  |  |  |  | 24,684 |
Total |  |  |  | $ |  | 494,981 |

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
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