5. Long-Term debt and capital lease obligations

Long-term debt and capital lease obligations consisted of the following:


	October 31,
	2012		2011
	(In thousands)
Revolving credit agreement with banks (weighted average rate of 2.17% at October 31, 2012)	$	110,000	$	222,701
Term loan, accruing interest at 6.12%, maturing in 2016		40,000		50,000
Capital lease obligation, imputed interest at 5.53%, due in monthly installments of $112,015, including interest, maturity in 2015		10,969		11,685
6% Mississippi Business Investment Act bond-capital lease obligation, paid October 4, 2012		0		390

		160,969		284,776
Less current maturities of long-term debt and capital leases		10,757		11,106

	$	150,212	$	273,670

On February 23, 2011, the Company entered into a new revolving credit facility to, among other things, increase the available credit to $500.0 million from $300.0 million. On October 4, 2012, the Company and the lenders amended the revolving credit facility. The amendment sets the annual capital expenditure limitation at $55.0 million for fiscal years 2012, 2013, 2014, and 2015, plus, for each year, up to $10.0 million permitted to be spent in the preceding fiscal year but not actually spent therein. The capital expenditure limitation for fiscal 2012, with the permitted carry over, was $65.0 million. The amendment also permits the Company to spend up to $125.0 million each in capital expenditures on the construction of two new poultry complexes, which expenditures are in addition to the annual limits. Under the facility, the Company may not exceed a maximum debt to total capitalization ratio of 55% from the date of the agreement through October 30, 2014, and 50% thereafter. The Company has a one-time right, at any time during the life of the agreement, to increase the maximum debt to total capitalization ratio then in effect by 5% in connection with the construction of either of two new poultry complexes at locations to be determined by the Company, but within the United States, for the four fiscal quarters beginning on the first day of the fiscal quarter during which the Company gives written notice of its intent to exercise this right. The Company did not exercise this right in fiscal 2012. The amendment also sets a minimum net worth requirement that at October 31, 2012, was $400.0 million. The total committed credit under the amended facility remains at $500.0 million. The credit remains unsecured and, unless extended, will expire on February 23, 2016. As of October 31, 2012, the Company had borrowed $110.0 million under the revolving credit facility and had $9.3 million in outstanding letters of credit. As of December 13, 2012, the Company had borrowed $110.0 million under the revolving credit facility, leaving $380.7 million available under the revolving credit facility.

The Company has the option to borrow funds under the revolving line of credit based on the Prime interest rate or the Libor interest rate plus a spread ranging from 1.00% to 2.75%. The spread on Libor borrowings and the commitment fee for the unused balance of the revolving credit agreement are determined based upon the Company’s leverage ratio as follows:


*Level*	Leverage Ratio	Spread			Commitment Fee
1	< 25%		1.00	%		0.35	%
2	³ 25% and < 35%		1.25	%		0.40	%
3	³ 35% and < 45%		1.75	%		0.45	%
4	³ 45% and < 55%		2.25	%		0.50	%
5	³ 55%		2.75	%		0.50	%

The term loan consists of a private placement of $40.0 million in unsecured debt. The term loan matures in 2016 with annual principal installments of $10.0 million which began in 2012. The term loan has net worth, current ratio and debt to capitalization covenants comparable to that of the Company’s revolving credit facility. The Company was in compliance with all covenants at October 31, 2012.

The aggregate annual maturities of long-term debt and capital lease obligations at October 31, 2012 are as follows (in thousands):


Fiscal Year	Amount
2013	$	10,757
2014		10,799
2015		19,413
2016		120,000

	$	160,969