DEBT

On August 21, 2015, the Company entered into a credit agreement (the “Credit Agreement”) with TCB. The Credit Agreement provides for the Revolving Facility maturing August 21, 2019 permitting the Company to borrow funds from time to time in an aggregate amount equal to the lesser of the borrowing base amount, which is 85% of eligible accounts, and TCB’s commitment of $25.0 million.

Effective September 21, 2016, pursuant to the terms of the Credit Agreement, the Company obtained an additional $10.0 million in credit commitments from TCB, as administrative and syndication agent, and certain other lender parties, pursuant to a Commitment Increase Agreement, raising the total commitment under the Credit Agreement to $35.0 million. All other terms and conditions of the Credit Agreement remain the same as those in effect prior to the increase. The Company's obligations are secured by a first priority security interest in all assets of the Company.

On August 21, 2015, the Company also entered into a senior subordinated credit agreement (the “Senior Subordinated Credit Agreement”) with Patriot Capital III SBIC, L.P. and Patriot Capital III, L.P. (together, “PC Subordinated Debt”), pursuant to which the foregoing lenders made term loans of $14,250,000 and $750,000, respectively, with a maturity date of February 21, 2020. Interest accrued at a rate of 13% per annum (with at least 10% paid in cash quarterly and the remainder in cash or PIK interest added to the principal amount of the term loans). Prepayment of the loans prior to maturity was subject to an early repayment fee. The Company's obligations were secured by a security interest in all assets of the Company.

Proceeds from the foregoing loan arrangements were used to pay off existing indebtedness of the Company under the Fifth Third Bank senior credit facility described below, as amended, and $438,507 was recorded as a loss on extinguishment of debt in Fiscal year 2015.

Proceeds from the June 2016 common stock issuance (See Note 12) were used to pay off outstanding amounts under the Senior Subordinated Credit Agreement, $404,119 was recorded as a loss on extinguishment of debt, and a 2% repayment fee was recorded in interest expense in the second quarter of Fiscal year 2016.

On January 29, 2014, the Company amended the senior credit facility with Fifth Third Bank, which provided for a revolving credit facility ("Revolver") of $20.0 million, increased the original principal amount of the term loan facility ("Term Loan A") from $7.1 million to $11.3 million and added $8.0 million of subordinated debt ("Term Loan B"). Borrowings under the Revolver and Term Loan A were partially used to repay the senior subordinated loans with two private lenders and $986,835 was recorded as a loss on the extinguishment of related party debt in the first quarter of Fiscal year 2014.

In connection with the acquisition of the assets of D&W (see Note 3) on February 23, 2015, the Company entered into an amendment with its lenders under senior credit facility to add BGFA as an additional borrower under the agreement and increased the borrowing base amount from 80% to 85% of eligible receivables.

Line of Credit

At December 25, 2016 and December 27, 2015, $23.9 million and $16.2 million, respectively, was outstanding on the Revolving Facility with TCB. Borrowings under the Revolving Facility bear interest equal to (i) Base Rate (the higher of Prime Rate, Federal Funds Rate plus 0.5%, or LIBOR plus 1.0%) plus 0.5% or (ii) LIBOR plus 3.25%. Additionally, the Company pays an unused commitment fee of 0.25% on the unfunded portion of the Revolving Facility.

Borrowings under the Revolving Facility bore interest as follows:



	December 25, 2016				December 27, 2015
Base Rate	$	8,882,714	4.25	%	$	6,217,000	4.00	%
LIBOR	5,000,000		3.95	%	3,000,000		3.57	%
LIBOR	5,000,000		3.99	%	4,000,000		3.61	%
LIBOR	5,000,000		4.16	%	3,000,000		3.77	%
Total	$	23,882,714			$	16,217,000

Long Term Debt

Long-term debt consists of the following at:



	December 25, 2016		December 27, 2015
PC Subordinated Debt, principal and compounding deferred interest of 3% per annum due February 21, 2020. Interest is paid quarterly at an annual rate of 10%.	$	—	$	15,051,250
Less deferred finance fees	—		(443,800		)
Long-term debt non-current portion	$	—	$	14,607,450

The Credit Agreement contains, and the Senior Subordinated Credit Agreement contained, customary affirmative covenants as well as negative covenants restricting the ability of the Company and its subsidiaries to, among other things (with certain exceptions): (i) incur indebtedness; (ii) incur liens; (iii) enter into mergers, consolidations, or similar transactions; (iv) pay dividends or make distributions (except for permitted distributions as defined in the agreements); (v) make loans; (vi) dispose of assets; (vii) enter into transactions with affiliates; or (viii) change the nature of their business. In addition, the Company must comply with certain financial covenants, including minimum debt service coverage ratio, minimum current ratio and maximum leverage ratio. As of December 25, 2016, the Company was in compliance with these covenants.

Maturities on the Revolving Facility as of December 25, 2016, are as follows:



Fiscal Years Ending:
2017	$	—
2018	—
2019	23,882,714
Less deferred finance fees:	(264,520		)
Total	$	23,618,194