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## 10. BORROWINGS (continued) 

## NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) 

## COHERENT, INC. AND SUBSIDIARIES 

net leverage ratio as of the last day of each fiscal quarter of less of than or equal to 3.50 to 1.00. We were in compliance with all covenants at September 28, 2019. 

We incurred $28.5 million of debt issuance costs related to the Euro Term Loan and $0.5 million of debt issuance costs to the original lenders related to the First Amendment, which are included in short-term borrowings and current portion of long-term obligations and long-term obligations in the consolidated balance sheets and will be amortized to interest expense over the seven year life of the Euro Term Loan using the effective interest method, adjusted to accelerate amortization related to voluntary repayments. We incurred $2.3 million of debt issuance costs in connection with the Revolving Credit Facility which were capitalized and included in prepaid expenses and other assets and other assets in the consolidated balance sheets and will be amortized to interest expense using the straight-line method over the contractual term of 5 years of the Revolving Credit Facility. 

Additional sources of cash available to us were international currency lines of credit and bank credit facilities totaling $26.0 million as of September 28, 2019, of which $20.8 million was unused and available. These unsecured international facilities were used in Europe and Japan in fiscal 2019. As of September 28, 2019, we had utilized $5.2 million of the international credit facilities as guarantees in Europe. 

Short-term borrowings and current portion of long-term obligations consist of the following (in thousands): 

<img src='content_image/1033213.jpg'>

(1) Net of debt issuance costs of $4.6 million and $4.7 million at September 28, 2019 and September 29, 2018, respectively. 

Long-term obligations consist of the following (in thousands): 

<img src='content_image/1033214.jpg'>

(1) Net of debt issuance costs of $6.4 million and $11.2 million at September 28, 2019 and September 29, 2018, respectively. 

Contractual maturities of our debt obligations, excluding line of credit borrowings, as of September 28, 2019 are as follows (in thousands): 

<img src='content_image/1033215.jpg'>

