Long-Term Debt

Long-term debt as of October 1, 2016 and July 2, 2016 included the following:



	October 1, 2016			July 2, 2016
Borrowings under Unsecured Revolver	$	97,000		$	107,600
Borrowings under A/R Line	23,548			23,548
Borrowings under Fixed Rate Notes	100,000			100,000
	220,548			231,148
Less current maturities	(22,000		)	—
Total long-term debt	$	198,548		$	231,148

We have a $350,000 unsecured revolver with a syndicate of banks, which expires on April 15, 2020. Domestic U.S. Dollar borrowings under this revolver generally bear interest at the adjusted London Interbank Offered Rate ("LIBOR") for specified periods plus a margin, which can range from 1.00% to 1.75%, depending on our consolidated leverage ratio and can be expanded by $200,000 to a total of $550,000.

As of October 1, 2016, there was $97,000 outstanding under this revolver. The unused portion of the revolver may be used for general corporate purposes, dividends, working capital needs and to provide up to $45,000 in letters of credit. As of October 1, 2016, we had no letters of credit outstanding under this revolver. As of October 1, 2016, there is a fee of 0.15% of the unused daily balance of this revolver.

As a result of the proposed merger with Cintas (see Note 14, "Proposed Merger with Cintas Corporation," of Notes to the Condensed Consolidated Financial Statements) and the cessation of our share repurchase program, we expect to generate excess cash flow over the next 12 months, which we expect to use to pay down our unsecured revolver. Therefore, $22,000 has been classified as current maturities of long-term debt.

Availability of credit under this revolver requires that we maintain compliance with certain covenants, which are the most restrictive when compared to our other credit facilities. The following table illustrates compliance with regard to the material financial covenants required by the terms of this revolver as of October 1, 2016:



	Required	Actual
Maximum Leverage Ratio (Debt/EBITDA)	3.50	1.50
Minimum Interest Coverage Ratio (EBITDA/Interest Expense)	3.00	22.95

Our maximum leverage ratio and minimum interest coverage ratio covenants are calculated by adding back certain non-cash charges, as defined in this revolver.

Borrowings outstanding as of October 1, 2016 under this revolver bear interest at a weighted average effective rate of 1.67%.

We recently renewed our $50,000 accounts receivable securitization facility, which was due to expire on September 27, 2016. The new expiration date is scheduled for September 26, 2017. We intend to refinance these borrowings on or before the expiration date or pay the outstanding balance using our unsecured revolver. There were no material changes to the terms of the facility. Under the terms of the facility, we pay interest at a rate per annum equal to LIBOR plus a margin of 0.75%. The facility is subject to customary fees, including a rate per annum equal to 0.80% for the issuance of letters of credit and 0.26% for any unused portion of the facility. As is customary with transactions of this nature, our eligible accounts receivable are sold to a consolidated subsidiary. As of October 1, 2016, there was $23,548 outstanding under this securitization facility and there were $26,452 of letters of credit outstanding, primarily related to our property and casualty insurance programs. Borrowings outstanding as of October 1, 2016 under this facility bear interest at an average effective rate of 1.28%.

We have $100,000 of fixed rate unsecured senior notes with $50,000 of the notes bearing interest at a fixed interest rate of 3.73% per annum maturing April 15, 2023 and $50,000 of the notes bearing interest at a fixed interest rate of 3.88% per annum maturing on April 15, 2025. Interest on the notes is payable semiannually on April 15 and October 15. As of October 1, 2016, the outstanding balance of the notes was $100,000 at an effective rate of 3.81%.

See Note 6, "Derivative Financial Instruments," of Notes to the Condensed Consolidated Financial Statements for details of our interest rate swap and hedging activities related to our outstanding debt.