BANK BORROWINGS AND LONG-TERM DEBT

6 Months Ended

Sep. 27, 2013

5. BANK BORROWINGS AND LONG-TERM DEBT

Bank borrowings and long-term debt are as follows:

	As of			As of
	September 27, 2013			March 31, 2013
	(In thousands)

4.625% Notes due February 2020	$	500,000		$	500,000
5.000% Notes due February 2023	500,000			500,000
Term Loan, including current portion, due October 2014	—			170,340
Term Loan, including current portion, due in installments through October 2016	452,065			517,500
Term Loan, including current portion, due in installments through August 2018	600,000			—
Asia Term Loans	—			375,000
Other	5,068			4,787
	2,057,133			2,067,627
Current portion	(43,427		)	(416,654		)
Non-current portion	$	2,013,706		$	1,650,973

The weighted average interest rates for the Company’s long-term debt were 3.3% and 3.5% as of September 27, 2013 and March 31, 2013, respectively.

On August 30, 2013, the Company entered into a $600 million term loan agreement due August 30, 2018 and used part of the proceeds to repay the outstanding balances of the term loan due October 2014 and the Asia Term Loans in full amounting to $170.3 million and $374.5 million, respectively. The remaining $55.2 million was used to repay part of the term loan due October 2016 and upfront bank fees.

Borrowings under the term loan due August 2018 bear interest, at the Company’s option, either at (i) LIBOR plus the applicable margin for LIBOR loans ranging between 1.00% and 2.00%, based on the Company’s credit ratings or (ii) the base rate (the greatest of the agent’s prime rate, the federal funds rate plus 0.50% and LIBOR for a one-month interest period plus 1.00%) plus an applicable margin ranging between 0.00% and 1.00%, based on the Company’s credit rating.

This term loan agreement is unsecured, and contains customary restrictions on the Company’s and its subsidiaries’ ability to (i) incur certain debt, (ii) make certain investments, (iii) make certain acquisitions of other entities, (iv) incur liens, (v) dispose of assets, (vi) make non-cash distributions to shareholders, and (vii) engage in transactions with affiliates. These covenants are subject to a number of exceptions and limitations. This term loan agreement also requires that the Company maintain a maximum ratio of total indebtedness to EBITDA (earnings before interest expense, taxes, depreciation and amortization), and a minimum interest coverage ratio, as defined therein, during its term. As of September 27, 2013, the Company was in compliance with the covenants under this term loan agreement.

Repayments of the Company’s long term debt outstanding as of September 27, 2013 are as follows:

Fiscal Year Ending March 31,	Amount
	(In thousands)
2014 (1)	$	24,678
2015	44,518
2016	52,018
2017	368,351
2018	15,000
Thereafter	1,552,568
Total	$	2,057,133

(1) Represents scheduled repayments for the remaining six-month period ending March 31, 2014.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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