Long-Term Debt

The components of long-term debt are as follows:



(In thousands)	August 26, 2017			August 27, 2016
ABL	$	—		$	—
Term Loan	284,000			—
Gross Long-term debt, excluding issuance costs	284,000			—
Less: debt issuance cost, net	(9,424		)	—
Long-term debt, net of issuance costs	274,576			—
Less: current maturities	(2,850		)	—
Long-term debt, less current maturities	$	271,726		$	—

On November 8, 2016, we entered into a $125.0 million ABL agreement and a $300.0 million Term Loan with JPMorgan Chase.

Under the ABL agreement, we have a five-year credit facility on a revolving basis, subject to availability under a borrowing base consisting of eligible accounts receivable and eligible inventory. The line is available for issuance of letters of credit to a specified limit of $10.0 million. We pay a customary commitment fee based upon the amount of the facility available but unused.

Under the agreement, we can elect to base the interest rate on various base rates plus specific spreads, depending on the amount of borrowings outstanding. As of August 26, 2017 no funds were drawn on the ABL agreement other than an outstanding $0.2 million letter of credit.

Under the Term Loan agreement, we have a seven-year credit facility originally repayable in quarterly installments in an aggregate amount equal to 1.0% of the original amount of the Term Loan on March 31, June 30 and September 30, 2017; 1.25% each calendar quarter end thereafter; with the balance payable on November 8, 2023. A voluntary prepayment of $10.0 million in June of 2017 was designated as applying to the next regularly-scheduled payments. This designation provides an opportunity to defer principal payments on the term loan, at our option, until March 31, 2018. There are mandatory prepayments for proceeds of new debt, sale of significant assets or subsidiaries, and excess cash flow as those terms are defined in the agreement. Incremental term loans of up to $125.0 million are available if certain financial ratios and other conditions are met.

Under the Term Loan agreement, we can elect to base the interest rate on various base rates plus specific spreads. The interest rate as of August 26, 2017, before consideration of the hedge, was 5.7%.

The Term Loan agreement and the ABL agreement both contain various financial covenants. As of August 26, 2017, we are in compliance with all financial covenants of the Credit Agreement.

The ABL and Term Loan are guaranteed by Winnebago Industries, Inc. and all material direct and indirect domestic subsidiaries, and are secured by a security interest in substantially all of our assets, except minor excluded assets.

As of August 26, 2017, $9.4 million of debt issuance costs, net of amortization of $1.6 million, were recorded as a direct deduction from long-term debt, $1.4 million from the current portion and $8.0 million from the long-term portion. Unamortized debt issuance costs of $0.1 million related to the prior Amended Credit Agreement were expensed in the three months ended November 26, 2016.

Aggregate contractual maturities of debt in future fiscal years, are as follows:



(In thousands)		Amount
Year:	2018	$	4,250
	2019	15,000
	2020	15,000
	2021	15,000
	2022	15,000
	2023	15,000
	2024	204,750
	Total debt	$	284,000