5. Long-Term debt and capital lease obligations

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


	October 31,
	2013		2012
	(In thousands)
Revolving credit agreement with banks	$	0	$	110,000
Term loan, accruing interest at 6.12%, maturing in 2016		30,000		40,000
Capital lease obligation, imputed interest at 5.53%, due in monthly installments of $112,015, including interest, maturity in 2015		10,213		10,969

		40,213		160,969
Less current maturities of long-term debt and capital leases		10,799		10,757

	$	29,414	$	150,212

The Company entered into a new revolving credit facility on October 24, 2013, to, among other things, increase the available credit to $600.0 million from $500.0 million. The new facility increases the annual capital expenditure limitation from $55.0 million to $65.0 million for fiscal years 2013 through 2018, plus, for each year, up to $10.0 million carryover from the preceding fiscal year, when it is not actually spent in that year. The capital expenditure limitation for fiscal 2013, with the permitted carry over, was $75.0 million. The new facility also permits the Company to spend up to $140.0 million each in capital expenditures on the construction of two new poultry complexes to be located anywhere in the United States, which expenditures are in addition to the annual overall capital expenditure limits. The $140.0 million limit represents an increase from the $125.0 million limit available under the previous agreement. 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 term 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 the two potential new poultry complexes 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 2013. The amendment also sets a minimum net worth requirement that at October 31, 2013, was $475.3 million. The total committed credit under the facility is $600.0 million. The credit is unsecured and, unless extended, will expire on October 24, 2018. As of October 31, 2013, the Company had no outstanding draws under the facility, and had approximately $10.8 million outstanding in letters of credit. As of December 10, 2013, the Company had no outstanding draws under the revolving credit facility and had approximately $13.9 million outstanding in letters of credit, leaving $586.1 million available.

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 0.50% to 2.25%. 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%		0.50	%		0.25	%
2	³ 25% and < 35%		0.75	%		0.30	%
3	³ 35% and < 45%		1.25	%		0.35	%
4	³ 45% and < 55%		1.75	%		0.40	%
5	³ 55%		2.25	%		0.50	%

The term loan consists of a private placement of $30.0 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, 2013.

The aggregate annual maturities of long-term debt and capital lease obligations at October 31, 2013, are as follows (in thousands):


Fiscal Year	Amount
2014	$	10,799
2015		19,414
2016		10,000

	$	40,213