Debt, Capital Lease Obligations and Other Financing

9 Months Ended

Jul. 01, 2017

Debt and Capital Lease Obligations [Abstract]

Debt, Capital Lease Obligations And Other Financing

Debt, Capital Lease Obligations and Other Financing

Debt, capital lease and other obligations as of July 1, 2017 and October 1, 2016, consisted of the following (in thousands):

	July 1, 2017			October 1, 2016
Borrowing under the credit facility	$	88,000		$	75,000
5.20% senior notes, due June 15, 2018	175,000			175,000
Capital lease, non-cash financing of leased facility and other obligations	31,307			13,614
Unamortized deferred financing fees	(872		)	(1,105		)
Total obligations	293,435			262,509
Less: current portion	(267,297		)	(78,507		)
Long-term debt and capital lease obligations, net of current portion	$	26,138		$	184,002

The Company has a senior unsecured revolving credit facility (the “Credit Facility”) with a $300.0 million maximum commitment that expires on July 5, 2021.  The Credit Facility may be further increased to $500.0 million, generally by mutual agreement of the Company and the lenders, subject to certain customary conditions. During the nine months ended July 1, 2017, the highest daily borrowing was $142.0 million and the average daily borrowing was $99.4 million. The Company borrowed $166.0 million and repaid $153.0 million of revolving borrowings under the Credit Facility during the nine months ended July 1, 2017.

The financial covenants (as defined under the related Credit Agreement) require that the Company maintain, as of each fiscal quarter end, a maximum total leverage ratio and a minimum interest coverage ratio. As of July 1, 2017, the Company was in compliance with all financial covenants of the Credit Agreement. Borrowings under the Credit Facility bear interest, at the Company’s option, at a eurocurrency or base rate plus, in each case, an applicable interest rate margin based on the Company’s then-current leverage ratio (as defined in the Credit Agreement). As of July 1, 2017, the weighted average interest rate under the Credit Agreement was LIBOR plus 1.125% (or 2.221%). The Company is required to pay an annual commitment fee based on the daily unused revolver credit commitment based on the Company's leverage ratio; the fee was 0.175% as of July 1, 2017.

The Company also has outstanding 5.20% senior notes, due on June 15, 2018 (the “Notes”). As of July 1, 2017 and October 1, 2016, $175.0 million of Notes was outstanding, and the Company was in compliance with all financial covenants relating to the Notes, which are generally consistent with those in the Credit Agreement discussed above. During the third quarter of fiscal 2017, the Notes were moved to the current portion of long-term debt and capital lease obligations on the Condensed Consolidated Balance Sheets since their scheduled maturity was less than 12 months from July 1, 2017.

During the third quarter of fiscal 2017, the Company capitalized certain leased property, plant and equipment related to the relocation of its Neenah Design Center to a new facility located near the Company's Global Headquarters. This resulted in a non-cash transaction of approximately $15.7 million and is reflected in the current portion of long-term debt and capital lease obligations, as well as in long-term debt, capital lease obligations and other financing, net of current portion, on the accompanying Condensed Consolidated Balance Sheets as of July 1, 2017.