7. DEBT

Long-term debt consists of the following (in thousands):

	2006				2005
5.75% notes	$	298,755		$	298,598
Credit facilities		143,200			62,900
Capital lease obligations (see Note 9)		49,833			35,022
Mortgage loan obligations		10,924			11,790
		502,712			408,310
Less current installments		(2,197	)		(1,805	)
	$	500,515		$	406,505

In May 2004, we issued $300.0 million of 5.75% notes and received proceeds totaling approximately $298.4 million prior to debt issuance costs. The Notes require semi-annual interest payments and mature in June 2014.

We have credit facilities aggregating $450.0 million at June 28, 2006. A revolving credit facility of $300.0 million bears interest at LIBOR plus 0.625% (5.98% as of June 28, 2006) with a maximum rate of LIBOR plus 1.5% and expires in October 2009. At June 28, 2006, $30.0 million was outstanding under this facility. The remaining credit facility is an uncommitted obligation giving the lender the option not to extend funding and bears interest based upon a negotiated rate (federal funds rate plus 0.3% or 5.35% as of June 28, 2006). At June 28, 2006, $113.2 million was outstanding under the uncommitted facility. Unused credit facilities available to us totaled $306.8 million at June 28, 2006. Obligations under our credit facilities, which require short-term repayments, have been classified as long-term debt, reflecting our intent and ability to refinance these borrowings through the existing credit facilities.

The mortgage loan obligations require monthly principal and interest payments, mature on various dates through March 2020, and bear interest at rates ranging from 9.00% to 10.75% per year. The obligations are collateralized by the underlying restaurant properties.

In October 2001, we 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 required no interest payments and were issued at a discount representing a yield to maturity of 2.75% per annum. The Debentures became redeemable at our option on October 10, 2004. On December 22, 2004, we exercised our right to redeem all of the Debentures. Holders had the option to convert the Debentures into shares of common stock or cash until the close of business on January 20, 2005. Holders chose to convert a total of $10.8 million of the accreted debenture value into 308,092 shares of common stock and the remaining accreted debenture value of $262.7 million was redeemed for cash on January 24, 2005.

Our debt agreements contain various financial covenants that, among other things, require the maintenance of certain leverage and fixed charge coverage ratios. We are currently in compliance with all financial covenants.

Excluding capital lease obligations (see Note 9), our long-term debt maturities for the five years following June 28, 2006 are as follows (in thousands):

Fiscal Year
2007	$	113,832
2008		531
2009		576
2010		624
2011		30,677
Thereafter		306,639
	$	452,879