NOTE 6 – LONG-TERM DEBT, CAPITAL LEASES AND FINANCING OBLIGATIONS

Long-term debt, capital leases and financing obligations consist of the following:



	March 30,		March 31,
	2019		2018
	(Dollars in thousands)
Revolving Credit Facility, LIBOR-based (a)	$	137,682	$	148,028
Note payable, non-interest bearing, due in equal installments through September 2019		40		80
Less – Current portion of long-term debt		(40)		(40)
Long-term debt	$	137,682	$	148,068
Obligations under capital leases and financing obligations at various interest rates, due in installments through May 2049	$	260,278	$	246,169
Less – Current portion of capital leases and financing obligations		(22,189)		(18,949)
Long-term capital leases and financing obligations	$	238,089	$	227,220

_________________

(a)

The London Interbank Offered Rate (“LIBOR”) at March 30, 2019 was 2.5%.

In January 2016, we entered into a five-year $600 million revolving credit facility agreement with eight banks (the “Credit Facility”). The Credit Facility replaced a previous revolving credit facility. Interest only is payable monthly throughout the Credit Facility’s term. The borrowing capacity for the Credit Facility is up to $600 million, and includes an accordion feature permitting us to request an increase in availability of up to an additional $100 million. The Credit Facility bears interest at 75 to 175 basis points over LIBOR. The Credit Facility requires fees payable quarterly throughout the term between .15% and .35% of the amount of the average net availability under the Credit Facility during the preceding quarter. There was $137.7 million outstanding under the Credit Facility at March 30, 2019.

At March 30, 2019 and March 31, 2018, the interest rate spread paid by the Company was 125 basis points over LIBOR.

Within the Credit Facility, we have a sub-facility of $80 million for the purpose of issuing standby letters of credit. The line requires fees aggregating 87.5 to 187.5 basis points annually of the face amount of each standby letter of credit, payable quarterly in arrears. There was $31.4 million in an outstanding letter of credit at March 30, 2019.

The net availability under the Credit Facility at March 30, 2019 was $430.9 million.

On April 25, 2019, we amended and restated the Credit Facility (the “Amended Credit Facility”) to extend the term for another five years such that the Amended Credit Facility now expires on April 25, 2024. The Amended Credit Facility remains a $600 million revolving credit facility agreement with eight banks. The Amended Credit Facility increases our accordion feature permitting us to request an increase in availability of up to an additional $250 million, an increase of $150 million from the Credit Facility, and bears interest at 75 to 200 basis points over LIBOR.

Within the Amended Credit Facility, our sub-facility for the purposes of issuing standby letters of credit remains at $80 million. The line requires fees aggregating 87.5 to 212.5 basis points annually of the face amount of each standby letter of credit, payable quarterly in arrears.

Specific terms of the Amended Credit Facility permit the payment of cash dividends (with certain limitations), and permit mortgages and specific lease financing arrangements with other parties with certain limitations. Other specific terms and the maintenance of specified ratios are generally consistent with the Credit Facility. Additionally, the Amended Credit Facility is not secured by our real property, although we have agreed not to encumber our real property, with certain permissible exceptions.

We were in compliance with all debt covenants as of March 30, 2019.

Long-term debt had a carrying amount and a fair value of $137.7 million as of March 30, 2019, as compared to a carrying amount and a fair value of $148.1 million as of March 31, 2018. The fair value of long-term debt was estimated based on discounted cash flow analyses using either quoted market prices for the same or similar issues, or the current interest rates offered to Monro for debt with similar maturities.

In addition, we have financed certain store properties with capital leases/financing obligations, which amount to $260.3 million at March 30, 2019 and are due in installments through May 2049.

Aggregate debt maturities over the next five years are as follows:



	Capital Leases/
	Financing Obligations
	Aggregate		Imputed		All Other
Year Ending Fiscal March	Amount		Interest		Debt		Total
	(Dollars in thousands)

2020	$	43,034	$	(20,845)	$	40	$	22,229
2021		43,791		(19,216)				24,575
2022		43,459		(17,333)				26,126
2023		42,981		(15,100)				27,881
2024		37,733		(12,661)				25,072