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Long-Term Debt | 12 Months Ended
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Dec. 30, 2017
Debt Disclosure [Abstract] |
Long-Term Debt | Note 7 – Long-Term Debt Long-term debt consists of the following:
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | December 30, |  |  | December 31, |
(In thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 2017 |  |  | 2016 |
Senior secured revolving credit facility, due December 2021 | $ |  | 707,492 |  |  | $ |  | 359,127 |
Senior secured term loan, due December 2021 |  |  | — |  |  |  |  | 26,954 |
Capital lease obligations (Note 10) |  |  | 42,904 |  |  |  |  | 48,255 |
Other, 2.61% - 8.75%, due 2019 - 2024 |  |  | 5,972 |  |  |  |  | 5,028 |
Total debt - Principal |  |  | 756,368 |  |  |  |  | 439,364 |
Unamortized debt issuance costs |  |  | (6,417 | ) |  |  |  | (8,265 | )
Total debt |  |  | 749,951 |  |  |  |  | 431,099 |
Less current portion |  |  | 9,196 |  |  |  |  | 17,424 |
Total long-term debt | $ |  | 740,755 |  |  | $ |  | 413,675 |
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). In the first quarter of 2017, the Company borrowed $35.5 million on the senior secured term loan (Tranche A-2) in accordance with the December 2016 amendment. In the fourth quarter of 2017, the Company paid the outstanding balance on the senior secured term loan (Tranche A-2) of $52.5 million with proceeds from its senior secured revolving credit facilities, resulting in debt extinguishment costs of $0.4 million. 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. The interest rate terms for the two remaining tranches are as follows:
Credit |  | Outstanding as of |  |  |  |  |  |
Facility |  | December 30, 2017 |  |  |  |  |  |
Tranche |  | (In thousands) |  |  | Eurodollar Rate |  | Base Rate
Tranche A |  | $ |  | 668,093 |  |  | LIBOR plus 1.25% to 1.50% |  | 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 |  | $ |  | 39,399 |  |  | LIBOR plus 2.50% to 2.75% |  | Greater of: | (i) the Federal Funds Rate plus 2.00% to 2.25%
|  |  |  |  |  |  |  |  |  | (ii) the Eurodollar Rate plus 2.50% to 2.75%
|  |  |  |  |  |  |  |  |  | (iii) the prime rate plus 1.50% to 1.75%
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 30, 2017 and December 31, 2016, total outstanding borrowings on the secured revolving credit facilities and term loan were $707.5 million and $386.1 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 30, 2017 and had Excess Availability after the 10% requirement of $132.7 million and $415.8 million at December 30, 2017 and December 31, 2016, respectively. The Credit Agreement provides for the issuance of letters of credit, of which $9.2 million and $9.6 million were outstanding as of December 30, 2017 and December 31, 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 secured 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 2017. At December 30, 2017, aggregate annual maturities and scheduled payments of long-term debt are as follows:
(In thousands) | 2018 |  |  | 2019 |  |  | 2020 |  |  | 2021 |  |  | 2022 |  |  | Thereafter |  |  | Total |
Total borrowings | $ |  | 9,196 |  |  | $ |  | 6,969 |  |  | $ |  | 5,195 |  |  | $ |  | 710,494 |  |  | $ |  | 2,846 |  |  | $ |  | 21,668 |  |  | $ |  | 756,368 |

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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 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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