NOTE 7 DEBT AND LINES OF CREDIT

Short-Term Debt

Total short-term debt was as follows:

	Interest	January 2,		January 3,
(In thousands)	Rate(s)	2016		2015

Japanese revolving lines of credit, no expiration date	1.28%	$	2,817	$	3,163
Japanese receivables financing facility, no expiration date	1.20%	304		25
Current portion of long-term debt		—		584

Total short-term borrowings		$	3,121	$	3,772

Short-Term Lines of Credit

At January 2, 2016, the Company had various revolving lines of credit and an agreement with a Japanese bank denominated in yen under which it sells trade notes receivable with recourse. The Japanese revolving lines of credit allow the Company to borrow up to $10.1 million (based on the currency exchange rate at January 2, 2016). The agreement to sell receivables allows the Company to sell up to $2.1 million of receivables (based on the currency exchange rate at January 2, 2016). The effective interest rates and the amounts outstanding under these lines of credit and agreement at January 2, 2016 are presented in the table above. Such amounts are included in short-term borrowings in the accompanying consolidated balance sheets.

Long-Term Debt

Total long-term debt was as follows:

	Interest	January 2,		January 3,
(In thousands)	Rate(s)	2016		2015

U.S. revolving line of credit, maturing July 2018	1.94%	$	74,000	$	71,000
Israeli loans		—		584
Austrian loans, maturing through March 2019	0.75%-2.00%	247		—

Total long-term debt		74,247		71,584
Current portion of long-term debt		—		584

Total long-term debt, less current portion		$	74,247	$	71,000

Secured Credit Facility

On July 18, 2013, the Company entered into a credit agreement with certain lenders (Credit Agreement), which replaced a prior credit agreement. The Credit Agreement consists of a senior secured revolving credit facility of $275 million with a term of five years (Credit Facility). The Credit Agreement also provides the Company with the option to increase the aggregate principal amount of loans in the form of additional revolving loans or a separate tranche of term loans, in an aggregate amount that does not exceed $50 million, in each case subject to certain terms and conditions contained in the Credit Agreement. Concurrently with the closing of the Credit Agreement, the Company terminated the prior credit agreement after repaying the entire outstanding principal amount of $152.6 million and all accrued interest and fees thereon, utilizing $120.0 million borrowed under the Credit Facility together with a portion of the Company’s then-existing cash balances. Upon terminating the prior credit agreement, the Company recorded a loss on extinguishment of debt of $3.4 million, to write off the remaining deferred debt issuance costs relating to the prior credit agreement.

At January 2, 2016, the outstanding balance under the Credit Facility was $74.0 million. The interest rate per annum applicable to amounts outstanding under the Credit Facility is, at the Company’s option, either (a) the base rate as defined in the Credit Agreement (Base Rate) plus an applicable margin, or (b) the Eurodollar Rate as defined in the Credit Agreement (Eurodollar Rate) plus an applicable margin. A commitment fee is payable on the unused portion of the Credit Facility. The margins over the Base Rate and Eurodollar Rate applicable to the loans outstanding under the Credit Facility, and the commitment fee, are adjusted periodically based on the consolidated leverage ratio of the Company, as calculated pursuant to the Credit Agreement. The maximum applicable margins are 1.25% per annum for Base Rate loans and 2.25% per annum for Eurodollar Rate loans, and the minimum applicable margins are 0.5% per annum for Base Rate loans and 1.5% per annum for Eurodollar Rate loans. The maximum commitment fee is 0.40% per annum, and the minimum commitment fee is 0.25% per annum. As of January 2, 2016, the interest rate per annum applicable to amounts outstanding under the Credit Facility was 1.94%, and the commitment fee on the unused portion of the Credit Facility was 0.25%.

The Company’s obligations under the Credit Agreement are secured by a lien on substantially all of the assets of Newport Corporation and certain of its U.S. subsidiaries, which are guarantors under the Credit Agreement, as well as by a pledge of certain shares of international subsidiaries of Newport Corporation. The terms of the Credit Agreement permit the Company to pay dividends during the term of such facility, subject to certain conditions and limitations.

Austrian Loans

One of the Company’s Austrian subsidiaries has four outstanding loans from the Austrian government to fund research and development. These loans are unsecured and do not require principal repayment as long as certain conditions are met. Interest on these loans is payable semi-annually. The interest rates and principal amounts outstanding under these loans are shown in the table above.

Maturities of the Company’s debt obligations as of January 2, 2016 were as follows:

(In thousands)
2016	$	3,121
2017	88
2018	74,011
2019	148

	$	77,368