7. Borrowings

        Borrowings as of December 25, 2011, and December 26, 2010, are summarized below (in thousands):

        Maturities of long-term debt and capital lease obligations as of December 25, 2011 are as follows (in thousands):

        On May 6, 2011, the Company amended and restated its credit facility, which was set to mature in June 2012, to provide a more flexible capital structure and facilitate its growth plans. Borrowings under the amended credit agreement may be used by the Company to repurchase shares of its capital stock within certain limits, continue to finance restaurant construction, and for working capital or other general corporate requirements. The amended credit facility is comprised of (i) a $100 million revolving credit facility maturing on May 6, 2016 and (ii) a $150 million term loan maturing on May 6, 2016, both with rates based on the London Interbank Offered Rate (LIBOR) plus a range of 2.25% to 3.0% depending upon leverage or base rate plus a range of 1.25% to 2.00% depending upon leverage (base rate is the highest of (a) the Prime Rate, (b) the Federal Funds Rate plus an initial rate of 0.50% and (c) LIBOR for an Interest Period of one month plus 1%). The amended credit agreement also allows, subject to lender participation, the Company to increase the revolving credit facility or term loan by up to an additional $100 million in the future. As part of the amended credit agreement, the Company may also request the issuance of up to $20 million in letters of credit, the outstanding amount of which reduces the net borrowing capacity under the revolving credit facility. At December 25, 2011, the Company had standby letters of credit outstanding of $7.4 million. The amended credit agreement requires the payment of an annual commitment fee based upon the unused portion of the credit facility. The credit facility's interest rates and the annual commitment rate are based on a financial leverage ratio, as defined in the credit agreement. The Company's obligations under the amended credit agreement are secured by first priority liens and security interests in substantially all of the assets of the Company, which includes the capital stock of subsidiaries of the Company. Additionally, the amended credit agreement includes a negative pledge on all tangible and intangible assets (including all real and personal property) with customary exceptions.

        The Company initially borrowed $150 million under the term loan facility and used the proceeds to repay all borrowings under the prior credit facility. The effective interest rate on the term loan facility as of December 25, 2011 was 3.14%.

        The term loan is scheduled to be repaid in consecutive quarterly installments of $1.9 million through March 2012, $2.8 million through March 2013, and $3.8 million thereafter with an estimated final payment of $86.3 million in May 2016.

        The Company and certain of its subsidiaries granted liens in substantially all personal property assets to secure the respective obligations under the credit facility. Additionally, certain of the Company's real and personal property secure other indebtedness of the Company.

        Loan origination costs associated with the amendments to the credit facility and the net outstanding balance of costs related to the credit facility are $3.2 million and are included as deferred costs in other assets, net in the accompanying consolidated balance sheet as of December 25, 2011.

        During August 2011, the Company entered into a variable-to-fixed interest rate swap agreement with Rabobank to hedge the Company's floating interest rate on an aggregate of up to $73.1 million of debt that is currently or expected to be outstanding under the Company's credit facility. Refer to Note 8, Derivative and Other Comprehensive Income.

        The Company is subject to a number of customary covenants under its credit agreement, including limitations on additional borrowings, acquisitions, capital expenditures, share repurchases, lease commitments and dividend payments, and requirements to maintain certain financial ratios. For all of 2011, we remained below the current maximum debt leverage ratio of 2.75-to-1 set forth in our credit agreement and above the minimum fixed charge coverage ratio of 1.25-to-1.