Debt (Tables)

12 Months Ended

Jul. 30, 2016

The Company’s outstanding indebtedness consisted of the following (dollars in thousands):



	July 30, 2016			July 25, 2015
Credit Agreement - Revolving facility (matures April 2020)	$	—		$	95,250
Credit Agreement - Term loan facilities (mature April 2020)	346,250			150,000
0.75% convertible senior notes, net (matures September 2021)⁽¹⁾	373,077			—
7.125% senior subordinated notes, net⁽¹⁾	—			272,559
Long-term debt premium on 7.125% senior subordinated notes	—			2,841
	719,327			520,650
Less: current portion	(13,125		)	(3,750		)
Long-term debt	$	706,202		$	516,900

Convertible Debt

The Notes consist of the following components (dollars in thousands):



	July 30, 2016
Liability component
Principal amount of 0.75% convertible senior notes due September 2021	$	485,000
Less: Debt discount	(101,679		)
Less: Debt issuance costs⁽¹⁾	(10,244		)
Net carrying amount of Notes	$	373,077
Equity Component⁽²⁾	$	112,554

⁽¹⁾Issuance costs of approximately $15.1 million related to the Notes included the initial purchasers’ discount of approximately $13.3 million and approximately $1.8 million paid to third parties. Approximately $11.5 million of issuance costs of the Notes was allocated to the liability component and recorded as a contra-liability, presented net against the carrying amount for the Notes on the Company’s consolidated balance sheet, of which $10.2 million remains unamortized as of July 30, 2016. Debt issuance costs attributable to the liability component are amortized to interest expense on the effective interest rate method over the term of the Notes. During fiscal 2016, the Company recorded $1.2 million related to the amortization of debt issuance costs of the Notes.

⁽²⁾ Approximately $3.6 million of issuance costs paid to the initial purchasers of the Notes and third parties was allocated to the equity component and recorded net against the equity component in stockholders’ equity on the consolidated balance sheets.

Schedule Interest Rates for the Credit Agreement

The weighted average interest rates and fees for balances under the Credit Agreement as of July 30, 2016 and July 25, 2015 were as follows:



	Weighted Average Rate End of Period
	July 30, 2016	July 25, 2015
Borrowings - Term loan facilities	2.49%	1.94%
Borrowings - Revolving facility⁽¹⁾	—%	2.02%
Standby Letters of Credit	2.00%	1.75%
Unused Revolver	0.40%	0.35%

Borrowings under the Credit Agreement bear interest at rates described below based upon the Company’s consolidated leverage ratio, which is the ratio of the Company’s consolidated total funded debt to its trailing twelve month consolidated EBITDA, as defined by the Credit Agreement. In addition, the Company incurs certain fees for unused balances and letters of credit at the rates described below, also based upon the Company’s consolidated leverage ratio:



Borrowings - Eurodollar Rate Loans	1.25% - 2.00% plus LIBOR
Borrowings - Base Rate Loans	0.25% - 1.00% plus administrative agent’s base rate⁽¹⁾
Unused Revolver Commitment	0.25% - 0.40%
Standby Letters of Credit	1.25% - 2.00%
Commercial Letters of Credit	0.625% - 1.00%

⁽¹⁾The agent’s base rate is described in the Credit Agreement as the highest of (i) the administrative agent’s prime rate, (ii) the Federal Funds Rate plus 0.50%, and (iii) the Eurodollar rate plus 1.00%, plus an applicable margin.