Long-Term Obligations

6 Months Ended

Jul. 02, 2011

8. Long-Term Obligations

Long-term obligations are as follows:

	July 2,			January 1,
(In thousands)	2011			2011

Revolving Credit Facility	$	10,000		$	15,000
Variable Rate Term Loan, due from 2011 to 2016		7,500			7,750
Total Short- and Long-Term Obligations		17,500			22,750
Less: Short-Term Obligations and Current Maturities		(500	)		(5,500	)
Long-Term Obligations, less Current Maturities	$	17,000		$	17,250

The weighted average interest rate for the Company’s long-term obligations was 4.89% as of July 2, 2011.

Revolving Credit Facility

On February 13, 2008, the Company entered into a five-year unsecured revolving credit facility (2008 Credit Agreement) in the aggregate principal amount of up to $75,000,000. The 2008 Credit Agreement also includes an uncommitted unsecured incremental borrowing facility of up to an additional $75,000,000. The principal on any borrowings made under the 2008 Credit Agreement is due on February 13, 2013. As of July 2, 2011, the outstanding balance on the 2008 Credit Agreement was $10,000,000 and the Company had $64,033,000 of borrowing capacity available under the committed portion of the 2008 Credit Agreement. The amount the Company is able to borrow under the 2008 Credit Agreement is the total borrowing capacity less any outstanding borrowings, letters of credit and multi-currency borrowings issued under the 2008 Credit Agreement.

Commercial Real Estate Loan

On May 4, 2006, the Company borrowed $10,000,000 under a promissory note (2006 Commercial Real Estate Loan), which is repayable in quarterly installments of $125,000 over a ten-year period with the remaining principal balance of $5,000,000 due upon maturity. As of July 2, 2011, the remaining balance on the 2006 Commercial Real Estate Loan was $7,500,000. The 2006 Commercial Real Estate Loan is guaranteed and secured by real estate and related personal property of the Company and certain of its domestic subsidiaries, located in Theodore, Alabama; Auburn, Massachusetts; and Three Rivers, Michigan, pursuant to mortgage and security agreements dated May 4, 2006.