Long-term debt consists of the following (in thousands):
| |
 |
2002 |
|
2001 |
|
|
|
| Convertible debt |
$ |
254,948 |
|
$ |
- |
| Senior notes |
|
45,953 |
|
|
59,966 |
| Credit facilities |
|
63,500 |
|
|
146,700 |
| Capital lease obligations (see Note 8) |
|
36,047 |
|
|
1,398 |
| Mortgage loan obligations |
|
43,523 |
|
|
45,631 |
|
|
443,971 |
|
|
253,695 |
| Less current installments |
|
(17,292 |
) |
|
(17,635 |
) |
|
$ |
426,679 |
|
$ |
236,060 |
|
|
|
|
|
|
|
In October 2001, the Company issued $431.7 million of zero coupon convertible senior debentures (the
"Debentures"), maturing on October 10, 2021, and received proceeds totaling approximately $250.0 million prior
to debt issuance costs. The Debentures require no interest payments and were issued at a discount representing a
yield to maturity of 2.75% per annum. The Debentures are redeemable at the Company's option on October 10,
2004, and the holders of the Debentures may require the Company to redeem the Debentures on October 10,
2003, 2005, 2011 or 2016, and in certain other circumstances. In addition, each $1,000 Debenture is convertible
into 18.08 shares of the Company's common stock if the stock's market price exceeds 120% of the accreted
conversion price at specified dates, the Company exercises its option to redeem the Debentures, the credit rating
of the Debentures is reduced below both Baa3 and BBB-, or upon the occurrence of certain specified corporate
transactions. The accreted conversion price is equal to the issue price of the Debenture plus accrued original
issue discount divided by 18.08 shares.
The $46.0 million of unsecured senior notes bear interest at an annual rate of 7.8%. Interest is payable
semi-annually and principal of $14.3 million is due annually through fiscal 2004 with the remaining unpaid
balance due in fiscal 2005.
The Company has credit facilities aggregating $375.0 million at June 26, 2002. A revolving credit facility of
$275.0 million bears interest at LIBOR (1.855% at June 26, 2002) plus a maximum of 1.375% (0.50% at June 26,
2002) and expires in fiscal 2006. At June 26, 2002, $60.0 million was outstanding under this facility. The
remaining credit facilities bear interest based upon the lower of the banks' "Base" rate, certificate of deposit rate,
negotiated rate, or LIBOR rate plus 0.375%, and expire at various times beginning in fiscal 2003. Unused credit
facilities available to the Company were approximately $311.5 million at June 26, 2002. Obligations under the
Company's credit facilities, which require short-term repayments, have been classified as long-term debt,
reflecting the Company's intent and ability to refinance these borrowings through the existing credit facilities.
Pursuant to the acquisition of NERCO (see Note 2), the Company assumed $43.5 million in mortgage loan
obligations. The obligations require monthly principal and interest payments, mature on various dates from
September 2002 through March 2020, and bear interest at rates ranging from 8.44% to 10.75% per year. The
obligations are collateralized by the acquired restaurant properties.
Excluding capital lease obligations (see Note 8), the Company's long-term debt maturities for the five years
following June 26, 2002 are as follows (in thousands):
| Fiscal Year |
| 2003 |
|
$ |
16,456 |
| 2004 |
|
18,145 |
| 2005 |
|
18,073 |
| 2006 |
|
65,890 |
| 2007 |
|
2,261 |
| Thereafter |
|
287,099 |
|
|
|
$ |
407,924 |
|
|
|
|
|
|
