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Debt and Floor Plan Payable
 6 Months Ended
Sep. 27, 2025
Debt Disclosure [Abstract]  
Debt and Floor Plan Payable

9. Debt and Floor Plan Payable

Long-term debt consisted of the following:

 

(Dollars in thousands)

 

September 27, 2025

 

 

March 29, 2025

 

Obligations under industrial revenue bonds due 2029

 

$

12,430

 

 

$

12,430

 

Notes payable to Romeo Juliet, LLC, due 2026

 

 

5,314

 

 

 

5,314

 

Notes payable to Romeo Juliet, LLC, due 2039

 

 

2,036

 

 

 

2,036

 

Note payable to United Bank, due 2026

 

 

4,265

 

 

 

4,993

 

Total long-term debt

 

$

24,045

 

 

$

24,773

 

 

On July 28, 2025, the Company entered into a Second Amended and Restated Credit Agreement with a syndicate of banks that provides for a revolving credit facility of up to $200.0 million, including a $45.0 million letter of credit sub-facility ("Second Amended Credit Agreement"). The Second Amended Credit Agreement replaced the Company's previously existing Amended and Restated Credit Agreement dated July 7, 2021 (as amended by Amendment No.1 to Amended and Restated Credit Agreement, dated as of May 18, 2023). The Second Amended Credit Agreement allows the Company to draw down, repay and re-draw loans on the available funds during the term, subject to certain terms and conditions, matures in July 2030, and has no scheduled amortization.

The interest rate on borrowings under the Amended Credit Agreement is based on the Secured Overnight Financing Rate ("SOFR") or an Alternative Base Rate ("ABR") plus an interest rate spread. The interest rate spread adjusts based on the consolidated total net leverage of the Company. The interest rate ranges from a high of SOFR plus 1.875% or the ABR plus 0.875% (when the consolidated total net leverage ratio is equal to or greater than 2.25 to 1.00), to a low of SOFR plus 1.125% or the ABR plus 0.125% (when the consolidated total net leverage ratio is less than 0.50 to 1.00). At September 27, 2025, the interest rate under the Second Amended Credit Agreement was 5.29% and letters of credit issued under the Amended Credit Agreement totaled $27.5 million. Available borrowing capacity under the Second Amended Credit Agreement as of September 27, 2025 was $172.5 million.

The Second Amended Credit Agreement contains covenants that restrict the amount of additional debt, liens and certain payments, including equity buy-backs, investments, dispositions, mergers and consolidations, among other restrictions as defined. The Company was in compliance with all covenants of the Amended Credit Agreement as of September 27, 2025.

Obligations under industrial revenue bonds are supported by letters of credit and bear interest based on a municipal bond index rate. The weighted-average interest rate at September 27, 2025, including related costs and fees, was 4.45%. The industrial revenue bonds require lump-sum payments of principal upon maturity in 2029 and are secured by the assets of certain manufacturing facilities.

The Company has notes payable to Romeo Juliet, LLC, a subsidiary of Wells Fargo Community Investment Holdings, Inc. ("WFC"). The weighted-average interest rate on those notes at September 27, 2025 was 5.42%. The notes are secured by certain assets of the Company. In addition, the Company has a note payable to United Bank with an interest rate of 3.85% that is secured by a note receivable from HHB Investment Fund, LLC, a subsidiary of WFC.

Floor Plan Payables

The Company’s retail operations utilize floor plan financing to fund the purchase of manufactured homes for display or resale. At September 27, 2025 and March 29, 2025, the Company had outstanding borrowings on floor plan financing agreements of $98.9 million and $106.1 million, respectively. Total credit line capacity provided under the agreements was $253.0 million as of September 27, 2025. The weighted average interest rate on floor plan payables was 6.85% at September 27, 2025. Borrowings are secured by the homes and are required to be repaid when the Company sells the related home to a customer.