10. Financing

Short-term borrowings at June 28, 2014 and September 28, 2013 consist of the following:


		June 28,		September 28,
		2014		2013
	(expressed in thousands)
Bank line of credit, variable rate loan maturing July 2014,
with optional month-to-month term renewal and loan
repricing until September 2017	$	65,000	$	35,000

Total short-term borrowings	$	65,000	$	35,000

The Company’s credit facility provides for up to $100 million for working capital financing, permitted acquisitions, share purchases, or other general corporate purposes and expires in September 2017. At June 28, 2014 and September 28, 2013, outstanding borrowings under the credit facility were $65.0 million and $35.0 million, respectively. At June 28, 2014, the interest rate applicable to variable rate credit facility borrowings was 1.035%. At September 28, 2013, the interest rate applicable to outstanding variable rate credit facility borrowings was 1.065%. The variable interest rate at each date was the monthly U.S. LIBOR plus 87.5 basis points. At June 28, 2014, based upon the Company’s intention and ability to repay the entire balance within the next twelve fiscal months, the outstanding borrowings on the swing line loan are classified as short-term. At June 28, 2014, the Company had outstanding letters of credit drawn from the credit facility totaling $9.7 million, leaving $25.3 million of unused borrowing capacity. At September 28, 2013, the Company had outstanding letters of credit drawn from the credit facility totaling $14.3 million, leaving $50.7 million of unused borrowing capacity.