NOTE C — LONG-TERM DEBT

Long term debt consists of the following maturities as of September 23, 2014:



	September 23,		June 3,
	2014		2014

	(in thousands)
Current maturities	$	1,814	$	1,996	Current maturities

Sep-16		1,658		1,685	Jun-16
Sep-17		1,630		1,616	Jun-17
Sep-18		897		1,164	Jun-18
Sep-19		126		272	Jun-19
Subsequent to September 2019		-		-	Subsequent to June 2019
Long-term maturities	$	4,311	$	4,737	Long-term maturities

Total long-term debt	$	6,125	$	6,733	Total long-term debt

Loan Agreement

The Company has three unsecured loans in place, all with the same lending institution, which are currently governed under a three year loan agreement that has been in place since October 31, 2013 (2013 Loan Agreement).

# 1- Construction Loan Facility

The purpose of the Construction Loan Facility is to finance the construction and opening and/or refurbishing of Frisch’s Big Boy restaurants. Funds borrowed are initially governed under the Construction Phase of the Facility, which then must be converted into a Term Loan within six months. The sum of $5,000 is available to be borrowed at any time through October 31, 2016. So long as no default exists, the Company may request the lender’s commitment be increased to $15,000. However, the lender has no obligation to increase its commitment in response to such request.

As of September 23, 2014, the Company had no borrowings in the Construction Phase, and the aggregate outstanding balance of Term Loans was $5,547 ($1,671 is included in current maturities), which is included in the table above. All of the outstanding Term Loans are subject to fixed interest rates, the weighted average of which is 3.69 percent. These Term Loans are being repaid in 84 equal monthly installments of principal and interest aggregating $205, expiring in various periods ranging from November 2014 through February 2019.

# 2- Revolving Loan Facility

The purpose of the Revolving Loan Facility is to fund working capital needs and for other corporate uses. The sum of $11,000 is available to be borrowed at any time through October 31, 2016. Amounts repaid may be re-borrowed so long as the amount outstanding does not exceed $11,000 at any time. No borrowed funds were outstanding as of September 23, 2014.

# 3 - 2011 Term Loan

As of September 23, 2014, the unpaid balance on the 2011 Term Loan (formerly styled as Stock Repurchase Loan) was $579. It is being repaid in equal monthly installments of $13, which includes principal and interest at a fixed 3.56 percent interest rate. The final installment is due July 1, 2018.

Loan Covenants

The 2013 Loan Agreement contains covenants relating to cash flows, debt levels, lease expense, asset dispositions, investments and restrictions on pledging certain restaurant operating assets. The Company was in compliance with all loan covenants as of September 23, 2014. Compensating balances are not required under the terms of the 2013 Loan Agreement.

Other

None of the Company’s real property is currently encumbered by mortgages.

Fair Values

The fair values of the fixed rate Term Loans within the Construction Loan as shown in the following table are based on fixed rates that would have been available at September 23, 2014 if the loans could have been refinanced with terms similar to the remaining terms under the present Term Loans. The carrying value of substantially all other long-term debt approximates its fair value.

Carrying Value

Fair Value

(in thousands)

Term Loans under the Construction Loan