Note 7 – Long-Term Debt

Long-term debt consists of the following:

	December 31,			January 2,
(In thousands)	2016			2016
Senior secured revolving credit facility, due December 2021	$	359,127		$	394,982
Senior secured term loan, due December 2021		26,954			34,842
Capital lease obligations (Note 10)		48,255			58,599
Other, 2.61% - 8.75%, due 2019 - 2020		5,028			6,558
Total debt - principal		439,364			494,981
Unamortized debt issuance costs		(8,265	)		(8,185	)
Total debt		431,099			486,796
Less current portion		17,424			19,003
Total long-term debt	$	413,675		$	467,793

In December 2016, SpartanNash Company and certain of its subsidiaries amended its senior secured credit facility (the “Credit Agreement”). The principal changes of the amendment were to reduce the number of tiers in the pricing grid from three to two, reset the advance rate on real estate to 75%, provide the ability to increase the size of the term loan by $33 million, and extend the maturity date of the agreement, which was set to expire on January 8, 2020, to December 20, 2021. 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, 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 of December 31, 2016, the interest rate terms are as follows:

Credit	Outstanding
Facility	as of
Tranche	December 31, 2016		Eurodollar Rate	Base Rate
Tranche A	$	325,000	LIBOR plus 1.50% to 1.75%	Greater of:	(i) the Federal Funds Rate plus 1.00% to 1.25%
					(ii) the Eurodollar Rate plus 1.25% to 1.50%
					(iii) the prime rate plus 0.25% to 0.50%
Tranche A-1	$	34,127	LIBOR plus 2.75% to 3.00%	Greater of:	(i) the Federal Funds Rate plus 2.25% to 2.50%
					(ii) the Eurodollar Rate plus 2.50% to 2.75%
					(iii) the prime rate plus 1.50% to 1.75%
Tranche A-2	$	26,954	LIBOR plus 5.25%	Greater of:	(i) the Federal Funds Rate plus 4.75%
					(ii) the Eurodollar Rate plus 5.25%
					(iii) the prime rate plus 4.25%

The Company also incurs an unused line of credit fee on the unused portion of the loan commitments at a rate of 0.25% .

As of December 31, 2016 and January 2, 2016, the secured revolving credit facilities and senior secured term loan had total outstanding borrowings of $386.1 million and $429.8 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 December 31, 2016 and had Excess Availability after the 10% requirement of $415.8 million and $334.3 million at December 31, 2016 and January 2, 2016, respectively. The credit facility provides for the issuance of letters of credit, of which $9.6 million and $11.1 million were outstanding as of December 31, 2016 and January 2, 2016, 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.

The weighted average interest rate for all borrowings, including loan fee amortization, was 3.70% for the fiscal year ended December 31, 2016.

At December 31, 2016, aggregate annual maturities and scheduled payments of long-term debt are as follows:

	Fiscal Year
(In thousands)	2017		2018		2019		2020		2021		Thereafter		Total
	$	17,424	$	18,655	$	13,422	$	4,654	$	361,640	$	23,569	$	439,364