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Note 5 - Long-term Debt

6 Months Ended

Jun. 27, 2020

On May 17, 2019, we entered into a credit agreement (the “Current Credit Agreement”), which provides for a five-year secured term loan facility in an aggregate principal amount of $175.0 million and a five-year secured revolving loan facility in an aggregate principal amount of up to $75.0 million. Details of the term loan and the revolving loan (collectively, "long-term debt"), including the basis for interest, payment terms, and covenant compliance are more fully described in the Current Credit Agreement and our 2019 10-K.

During the second quarter of fiscal 2020, we made principal payments totaling $21.9 million, including $13.1 million in accelerated principal payments that fulfilled the required quarterly installments through the first quarter of fiscal 2021. We have made principal payments totaling $26.3 million in the first six months of fiscal 2020, and we drew $50.0 million on our revolving loan facility during the first quarter of fiscal 2020. The fair value of our long-term debt approximates the carrying value, which is reflected in our Consolidated Balance Sheets as follows:

	*June 27,*			*December 28,*
(In thousands)	*2020*			*2019*
Principal amount	$	171,875		$	148,125
Unamortized original issue discount and debt costs		(1,370	)		(1,579	)
Less: Current portion of long-term debt		(4,004	)		(21,474	)
Long-term debt, net of current portion and unamortized debt issue costs	$	166,501		$	125,072

As of June 27, 2020, the effective interest rate on the term loan was 1.89%, and the effective interest rate on the revolving loan was 1.67%. We pay a commitment fee of 0.20% on the unused portion of the revolving loan. Interest expense related to our long-term debt was included in Interest expense on our Consolidated Statements of Operations as follows:

	*Three Months Ended*				*Six Months Ended*
	*June 27,*		*June 29,*		*June 27,*		*June 29,*
(In thousands)	*2020*		*2019*		*2020*		*2019*
Contractual interest	$	918	$	2,989	$	2,004	$	7,305
Amortization of debt issuance costs and discount		105		528		208		1,215
Total interest expense related to long-term debt	$	1,023	$	3,517	$	2,212	$	8,520

Expected future principal payments are based on the schedule of required quarterly installments, adjusted for known voluntary payments. With the accelerated principal payments we made during the first six months of fiscal 2020, our next required quarterly installment is due in the second quarter of fiscal 2021. As of June 27, 2020, expected future principal payments on our long-term debt were as follows:

Fiscal year	(in thousands)

2020 (remaining 6 months)	$	-
2021		13,125
2022		17,500
2023		13,125
2024		128,125
	$	171,875