4. Debt, Capital Lease Obligations and Other Financing

Debt and capital lease obligations as of October 1, 2011 and October 2, 2010, consisted of (in thousands):

	2011	2010
Debt:
Borrowings under term loan, expiring on April 4, 2013, interest rate of base rate or LIBOR rate plus 1.50%. See also Note 5, Derivatives and Fair Value Measurements.	$ 97,500	$ 112,500

Borrowings under senior notes, expiring on June 15, 2018, interest rate of 5.20%. See also Note 5, Derivatives and Fair Value Measurements.	175,000	-

Capital lease:
Capital lease obligations for equipment and facilities located in San Diego and Xiamen, China, expiring on various dates through 2017; weighted average interest rates of 10.3% and 10.2% for fiscal 2011 and 2010, respectively.


	15,142	17,375

Less: current portion	(17,350)	(17,409)
Long-term debt and capital lease obligations, net of current portion	$ 270,292	$ 112,466

In February 2010, the Company negotiated the settlement of a capital lease in Kelso, Scotland. The termination of this capital lease obligation and acquisition of the property was effected through a cash payment by Plexus of $3.9 million.

The aggregate scheduled maturities of the Company's debt obligations as of October 1, 2011, are as follows (in thousands):

2012	$ 15,000
2013	82,500
2014	-
2015	-
2016	-
Thereafter	175,000
Total	$ 272,500

The aggregate scheduled maturities of the Company's obligations under capital leases as of October 1, 2011, are as follows (in thousands):

2012	$ 3,800
2013	3,894
2014	3,984
2015	4,078
2016	3,055
Thereafter	622
	19,433
Less: interest portion of capital leases	4,291
Total	$ 15,142

On April 4, 2008, the Company entered into its Credit Facility with a group of banks which allows the Company to borrow $150 million in term loans and $100 million in revolving loans. The $150 million in term loans was immediately funded and the $100 million revolving credit facility is currently available. The Credit Facility is unsecured and may be increased by an additional $100 million to a total of $200 million (the "accordion feature"). This is possible if the Company has not previously terminated all or any portion of the Credit Facility, there is no event of default existing under the credit agreement and both the Company and the administrative agent consent to the increase. The Credit Facility expires on April 4, 2013. Borrowings under the Credit Facility may be either through term loans, revolving or swing loans or letter of credit obligations. As of October 1, 2011, the Company has term loan borrowings of $97.5 million outstanding and no revolving borrowings under the Credit Facility. Average outstanding revolving borrowings for the fiscal year ended October 1, 2011 were $6.6 million, and there were no draws against the revolving credit facility during the fiscal year ended October 2, 2010.

The Credit Facility contains certain financial covenants, which include a maximum total leverage ratio, maximum value of fixed rentals and operating lease obligations, a minimum interest coverage ratio and a minimum net worth test, all as defined in the agreement. As of October 1, 2011, the Company was in compliance with all debt covenants. If the Company incurs an event of default, as defined in the Credit Facility (including any failure to comply with a financial covenant), the group of banks has the right to terminate the remaining Credit Facility and all other obligations, and demand immediate repayment of all outstanding sums (principal and accrued interest). The interest rate on borrowing varies depending upon the Company's then-current total leverage ratio; as of October 1, 2011, the Company could elect to pay interest at a defined base rate or the LIBOR rate plus 1.50%. Rates would increase upon negative changes in specified Company financial metrics and would decrease upon reduction in the current total leverage ratio to no less than LIBOR plus 1.00%. The Company is also required to pay an annual commitment fee on the unused credit commitment based on its leverage ratio; the current fee is 0.375%. Unless the accordion feature is exercised, this fee applies only to the initial $100 million of availability (excluding the $150 million of term borrowings). Origination fees and expenses associated with the Credit Facility totaled approximately $1.3 million and have been deferred. These origination fees and expenses will be amortized over the five-year term of the Credit Facility. Quarterly principal repayments of the term loan of $3.75 million per quarter began June 30, 2008 and end on April 4, 2013 with a balloon repayment of $75.0 million.

The Credit Facility allows for the future payment of cash dividends or the future repurchases of shares provided that no event of default (including any failure to comply with a financial covenant) is existing at the time of, or would be caused by, a dividend payment or a share repurchase.

On April 21, 2011, the Company entered into a Note Purchase Agreement (the "Agreement") with certain institutional investors related to $175 million in principal amount of 5.20% Senior Notes, due on June 15, 2018 (the "Notes"). The Company issued $100 million in principal amount of the Notes on April 21, 2011, and the remaining $75 million on June 15, 2011. The Agreement includes operational and financial covenants which include a maximum total leverage ratio, a minimum interest coverage ratio and restrictions on additional indebtedness, liens and dispositions, all as defined in the Agreement. As of October 1, 2011, the Company was in compliance with all debt covenants. The Notes are unsecured and rank at least equally and ratably in point and security with the other unsecured and unsubordinated financing facilities of the Company. Our effective interest rate on the Notes after the treasury rate lock agreement discussed in Note 5 – Derivatives and Fair Value Measurements is 4.97%. Origination fees and expenses associated with the Agreement totaled approximately $0.9 million and have been deferred. These origination fees and expenses are being amortized over the seven-year term of the Notes. Semi-annual interest payments began on June 15, 2011, and end on June 15, 2018, with full repayment of the total principal of the Notes.

Interest expense related to the commitment fee and amortization of the deferred origination fees and expenses for the Credit Facility and Agreement totaled approximately $0.7 million in each of fiscal 2011, 2010 and 2009.

Cash paid for interest in fiscal 2011, 2010 and 2009 was $8.6 million, $9.2 million and $10.5 million, respectively.