7. Financing:

Short-term borrowings at September 27, 2014 and September 28, 2013 consist of the following:



		2014		2013
		(expressed in thousands)

Bank line of credit, monthly U.S. LIBOR plus 87.5 basis points,
retired in September 2014	$	-	$	35,000
Bank line of credit, monthly U.S. LIBOR plus 100 basis points, in effect
at September 27, 2014, maturing October 2014, with optional
month-to-month term renewal and loan repricing until September 2019	$	60,000	$	-
Total Short-Term Borrowings	$	60,000	$	35,000

On September 27, 2014, the Company entered into a credit agreement (“Credit Agreement”) with JPMorgan Chase Bank, N.A. as administrative agent, and other financial institutions that may become parties to the Credit Agreement from time to time. This agreement amended and extended the $100 million senior unsecured credit facility that was scheduled to expire in September 2017. The Credit Agreement provides for a five-year, $200 million senior unsecured revolving credit facility (“Credit Facility”) maturing September 24, 2019. The Company may use the Credit Facility for working capital financing, permitted acquisitions, share purchases, or other lawful corporate purposes. At September 27, 2014, outstanding borrowings under the Credit Facility were $60.0 million. At September 28, 2013, outstanding borrowings under the prior Credit Facility were $35.0 million. At September 27, 2014, the Company had outstanding letters of credit drawn from the Credit Facility totaling $9.4 million, leaving approximately $130.6 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 approximately $50.7 million of unused borrowing capacity.

The weighted average interest rate on outstanding borrowings under the Credit Facility during the fiscal years ended September 27, 2014 and September 28, 2013 was 1.15% and 1.57%, respectively. At September 27, 2014 the interest rate applicable to outstanding variable rate credit facility borrowings was 1.15%, which was the monthly U.S.LIBOR plus 100 basis points. At September 28, 2013, the interest rate applicable to outstanding variable rate credit facility borrowings was 1.07%, which was the monthly U.S.LIBOR plus 87.5 basis points.

The primary categories of borrowing include Eurocurrency Borrowing, Alternate Base Rate (“ABR”) Borrowing, and Swingline Loans. ABR Borrowings and Swingline Loans made in U.S. Dollars under the Credit Agreement bear interest at a rate per annum equal to the Alternate Base Rate (defined as the greater of (a) the Prime Rate (as defined in the Credit Agreement) in effect on such day, (b) the Federal Funds Effective Rate (as defined in the Credit Agreement) in effect on such day plus ½ of 1%, or (c) the Adjusted LIBO Rate (as defined in the Credit Agreement) for a one month Interest Period on such day plus 1%), plus the ABR Spread, as defined in the Credit Agreement, based upon the Leverage Ratio, as defined in the Credit Agreement, applicable on such date. Eurocurrency Borrowings made under the Credit Agreement bear interest at a rate per annum equal to the Adjusted LIBO Rate, as defined in the Credit Agreement, for the interest period in effect for such Eurocurrency Borrowing plus the Eurocurrency Spread, as defined in the Credit Agreement, based upon the Leverage Ratio applicable on such date. At September 27, 2014, the prime rate of 3.25% was the applicable Alternate Base Rate, plus ABR Spread ranging from 0% to 0.625% based on the Leverage Ratio. At September 27, 2014, the applicable Adjusted LIBO rate was 0.15%, plus Eurocurrency Spread ranging from 1.00% to 1.625% based on the Leverage Ratio. Commitment fees are payable on the unused portion of the Credit Facility at rates between 0.15% and 0.30%, based on the Leverage Ratio. During each of the fiscal years ended September 27, 2014 and September 28, 2013, commitment fees incurred on the Credit Facility were $0.1 million and $0.1 million, respectively.

Under the Credit Agreement, the Company and its subsidiaries are subject to customary affirmative and negative covenants, including restrictions on their ability to incur debt, create liens, dispose of assets, make investments, loans, advances, guarantees and acquisitions, enter into transactions with affiliates, and enter into any restrictive agreements, and customary events of default (including payment defaults, covenant defaults, change of control defaults and bankruptcy defaults). The Credit Agreement also contains financial covenants, including the ratio of consolidated total indebtedness to consolidated EBITDA, as well as the ratio of consolidated EBITDA to consolidated interest expense. These covenants restrict the Company’s ability to pay dividends and purchase outstanding shares of common stock. At September 27, 2014 and September 28, 2013, the Company was in compliance with these financial covenants.

At September 27, 2014, the Company had outstanding letters of credit and guarantees totaling $21.2 million and $24.7 million, respectively, primarily to bond advance payments and performance related to customer contracts in Test.