On December 19, 2011, the Company replaced its existing working capital facility with a new five-year US$180 million working capital  facility entered into with Royal Bank of Canada as Administrative and Collateral Agent expiring December 19, 2016 (the “facility”). This  facility replaced all existing working capital debt facilities. The facility is asset-based and is collateralized by the Company’s inventory  and accounts receivable and other personal property in Canada and the U.S., subject to a first charge on brands and trade names and  related intangibles under the long-term debt facilities. A second charge over the Company’s plant and equipment is also in place. The  facility allows borrowings by way of Prime loans, Base Rate loans, LIBOR, or Canadian BAs at interest rates and spreads that depend  on leverage, defined as Funded Debt to EBITDA. In certain circumstances, based on availability under the line, the Company must also  maintain fixed charge coverage of 1.1 to 1. Fixed charges include interest and debt repayments, capital lease payments and capital  distributions, such as dividends or repurchase of shares under normal course issuer bids. This facility allows the Company to borrow  Canadian dollar Prime Rate loans and U.S. Base Rate loans in U.S. dollars at Prime or Base Rate plus 0.00% to 1.00%; Bankers’  Acceptances (BA) loans at BA rates plus 1.75% to 2.50%; and LIBOR advances at LIBOR plus 1.75% to 2.50%. Standby fees are also  required to be paid on the un-utilized line. The rate of interest charged on borrowings depends on a financial leverage ratio.  On December 19, 2011, the Company secured a US$250 million long-term loan, where the proceeds from this loan were used to repay the  existing notes payable and to finance the Icelandic USA Acquisition (see  note 4 ). The loan is secured on a first-priority basis by  substantially all tangible and intangible assets and the assets and stock of its present and future subsidiaries. Repayments are to be made  in 23 consecutive quarterly installments, with the unpaid balance due in full on December 31, 2017. The agreement includes financial  covenant requirements of minimum interest coverage ratio, maximum total leverage ratio, and maximum capital expenditures. 78 HIGH lIneR FooDS InCoRpoRAteD (Amounts in $000s) December 31, 2011 January 1, 2011  January 3, 2010 Notes payable  Series A at 6.31%  $  – $  15,812 $  17,250  Series B at 6.012% (US$28,470 in 2010; US$31,058 at Transition)  –  28,316  32,504  Series C at 6.012% (LIBOR plus 2.00% in 2010 and at Transition)  (US$4,537 in 2010 and US$4,950 at Transition)  – 4,513  5,180  Term loan at 1.50% LIBOR floor plus 5.5%   254,250  –  – Less: financing charges   (14,269)   (303)   (432)  239,981  48,338  54,502  Less: current portion   (2,543)  (4,426)   (4,582) $  237,438 $  43,912 $  49,920  Long-term debt  13. lONg-TERm DEbTAND FINANCE lEASE OblIgATIONS * ( note 26  (c)(vi)) (Amounts in $000s) December 31, 2011 January 1, 2011  January 3, 2010 Bank loans, denominated in Canadian dollars,  interest rate not exceeding prime plus 250 basis points,  (as at December 31, 2011 not exceeding prime), (average variable rate  for fiscal 2011 year end was 3.83%; fiscal 2010 year end was  3.0%; 2.25% at Transition)  $  10,182  $  4,735 $  974  Bank loans, denominated in U.S. dollars,  interest rate not exceeding U.S. base rate plus 250 basis points,  (as at December 31, 2011 not exceeding U.S base rate), (average variable rate  for fiscal 2011 year end was 2.98%; fiscal 2010 year end 2.2%;  1.61% at Transition), (2011: US$109,924; 2010: US$38,500; Transition:  US$21,153)  111,793  38,292  22,139  121,975  43,027  23,113  Less: financing costs*  (995)  (302)  (62) $  120,980  $  42,725 $  23,051  12. bANk lOANS