Financing Arrangements

3 Months Ended

Apr. 01, 2019

Long-term debt consists of the following:



(in thousands)	April 1, 2019			December 31, 2018
Term loan	$	77,408		$	79,508
Notes payable	—			3,000
Total principal amount of long-term debt	77,408			82,508
Unamortized debt issuance costs	(390		)	(464		)
Total long-term debt	77,018			82,044
Less current portion	(8,400		)	(11,400		)
Total long-term debt, net of current portion	$	68,618		$	70,644

Senior secured credit facility

On August 28, 2014, PMI Holdings, Inc., a wholly-owned subsidiary of Papa Murphy’s Holdings, Inc., entered into a $132.0 million senior secured credit facility (the “Senior Credit Facility”) consisting of a $112.0 million term loan and a $20.0 million revolving credit facility, which includes a $2.5 million letter of credit subfacility and a $1.0 million swing-line loan subfacility.

On November 6, 2018, the Company extended the term of the Senior Credit Facility to August 2020 and reduced the revolving credit facility from $20.0 million to $7.5 million. The Company has shown as the current portion of long-term debt an amount equal to the minimum term loan amortization payments of $2.1 million due on the last day of each fiscal quarter.

As of April 1, 2019, the term loan bears interest at a rate of 6.5% per annum based on the LIBOR rate option plus the applicable margin. The weighted average interest rate for all borrowings under the Senior Credit Facility for the first quarter of 2019 was 6.5%.

Notes payable

Papa Murphy’s Company Stores, Inc., a wholly owned subsidiary of Papa Murphy’s Holdings, Inc., had a $3.0 million note payable which bore interest at a rate of 5.0% per annum and matured in January 2019. This note was subordinated to the Senior Credit Facility and was paid in full in January 2019.

Papa Murphy's Holdings, Inc. 10-Q