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Debt Obligations
3 Months Ended
Mar. 30, 2019
Debt Disclosure [Abstract]  
Debt Obligations
Debt Obligations
On November 14, 2018, Wingstop Funding LLC (the “Issuer”), a limited-purpose, bankruptcy-remote, wholly owned indirect subsidiary of Wingstop Inc., issued $320 million of its Series 2018-1 4.970% Fixed Rate Senior Secured Notes, Class A-2 (the “Class A-2 Notes”). Interest and principal are payable on a quarterly basis and the Class A-2 Notes have an anticipated repayment date of December 2023.
In addition, the Issuer issued Series 2018-1 Variable Funding Senior Notes, Class A-1 (the “Variable Funding Notes”), which permit borrowings of up to a maximum principal amount of $20 million, which may be used to issue letters of credit. As of March 30, 2019$5.0 million of letters of credit were outstanding against the Variable Funding Notes, which relate primarily to interest reserves required under the base indenture and related supplemental indenture. There were no amounts drawn down on the letter of credit as of March 30, 2019 or December 29, 2018.
The Class A-2 Notes and the Variable Funding Notes are referred to collectively as the “Notes” and were issued in a securitization transaction pursuant to which certain of the Company’s domestic and foreign revenue-generating assets, consisting principally of franchise-related agreements and intellectual property, were contributed or otherwise transferred to the Issuer and certain other limited-purpose, bankruptcy-remote, wholly owned indirect subsidiaries of the Company that act as guarantors of the Notes and that have pledged substantially all of their assets as collateral securing the Notes.
The Notes are subject to a series of financial and non-financial covenants and restrictions. As of March 30, 2019, the Company was in compliance with all such financial covenants.
As of March 30, 2019, the scheduled principal payments on debt were as follows (in thousands):
Remainder of fiscal year 2019
$
2,400

Fiscal year 2020
3,200

Fiscal year 2021
3,200

Fiscal year 2022
3,200

Fiscal year 2023
308,000

Total
$
320,000