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LONG-TERM DEBT | 3 Months Ended
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Nov. 02, 2024
Debt Disclosure [Abstract] |
LONG-TERM DEBT | NOTE 8—LONG-TERM DEBT The Company’s long-term debt consisted of the following:
(in millions) | Average Interest Rate at November 2, 2024 |  | Fiscal Maturity Year |  | November 2, 2024 |  | August 3, 2024
Term Loan Facility (1) | 9.44% |  | 2031 |  | $ | 498 |  |  | $ | 499 |
ABL Credit Facility (2) | 6.15% |  | 2027 |  | 1,276 |  |  | 1,113 |
Senior Notes (3) | 6.75% |  | 2029 |  | 500 |  |  | 500 |
Other secured loans | —% |  | 2025 |  | — |  |  | 1 |
Debt issuance costs, net |  |  |  |  | (18) |  |  | (18) |
Original issue discount on debt |  |  |  |  | (9) |  |  | (10) |
Long-term debt, including current portion |  |  |  |  | 2,247 |  |  | 2,085 |
Less: current portion of long-term debt |  |  |  |  | (3) |  |  | (4) |
Long-term debt |  |  |  |  | $ | 2,244 |  |  | $ | 2,081 |
(1) Face value before debt issuance costs of $6 million and $6 million, respectively, and an original issue discount on debt of $9 million and $10 million, respectively. (2) Face value before debt issuance costs of $7 million and $7 million, respectively. (3) Face value before debt issuance costs of $5 million and $5 million, respectively. Term Loan Facility The term loan agreement dated as of October 22, 2018 (as amended, the “Term Loan Agreement”) provides for a $500 million senior secured first lien term loan (the “Term Loan Facility”), which is scheduled to mature on May 1, 2031, with a springing maturity of 91 days prior to the maturity of the Senior Notes (defined below), in the event that at least $100 million in principal amount outstanding of such Senior Notes remains outstanding on such date. The obligations under the Term Loan Facility are guaranteed by most of the Company’s wholly owned subsidiaries (collectively, the “Guarantors”), subject to customary exceptions and limitations. The Term Loan Facility is secured by (i) a first-priority lien on substantially all assets other than the ABL Assets (defined below) and (ii) a second-priority lien on substantially all of the ABL Assets, in each case, subject to customary exceptions and limitations, including an exception for owned real property (other than distribution centers) with net book values of less than or equal to $10 million. As of November 2, 2024 and August 3, 2024, there was $676 million and $686 million, respectively, of owned real property pledged as collateral that was included in Property and equipment, net in the Condensed Consolidated Balance Sheets. As of November 2, 2024, the borrowings under the Term Loan Facility bear interest at rates that, at the Term Borrowers’ option, can be either: (i) a base rate plus a margin of 3.75% or (ii) a SOFR rate plus a margin of 4.75%, provided that the SOFR rate shall never be less than 0.0%. ABL Credit Facility The revolving credit agreement dated as of June 3, 2022, (as amended, the “ABL Loan Agreement”) provides for a secured asset-based revolving credit facility (the “ABL Credit Facility”) with an aggregate principal amount available of up to $2,730 million, including Revolver Loans (as defined in the ABL Loan Agreement) of up to $2,600 million and a First In, Last Out (“FILO”) tranche of incremental ABL loans of $130 million (the “ABL FILO Loan”). The ABL Credit Facility is scheduled to mature on June 3, 2027. Revolver Loans and ABL FILO Loans under the ABL Credit Facility bear interest at rates that, at the Company’s option, can be either at a base rate or Term SOFR plus an applicable margin. The applicable margins and letter of credit fees under the ABL Credit Facility are variable and are dependent upon the prior fiscal quarter’s daily average Availability (as defined in the ABL Loan Agreement), and were as follows:
| Range of Facility Rates and Fees (per annum) | November 2, 2024
Applicable margin for revolver base rate loans | 0.00% - 0.25% | 0.00 | %
Applicable margin for revolver SOFR and BA loans(1) | 1.00% - 1.25% | 1.00 | %
Applicable margin for FILO base rate loans | 1.50% | 1.50 | %
Applicable margin for FILO SOFR loans | 2.50% | 2.50 | %
Unutilized commitment fees | 0.20% | 0.20 | %
Letter of credit fees | 1.125% - 1.375% | 1.125 | %
(1) The Company utilizes SOFR-based loans and UNFI Canada utilizes bankers’ acceptance rate-based loans. The ABL Credit Facility is guaranteed by the Guarantors, subject to customary exceptions and limitations. The ABL Credit Facility is secured by (i) a first-priority lien on certain accounts receivable, inventory and certain other assets (collectively, the “ABL Assets”) and (ii) a second-priority lien on all other assets that do not constitute ABL Assets, in each case, subject to customary exceptions and limitations. Availability under the ABL Credit Facility is subject to a borrowing base consisting of specified percentages of the value of eligible accounts receivable, credit card receivables, inventory, pharmacy receivables and pharmacy prescription files, after adjusting for customary reserves, but at no time shall exceed the aggregate commitments plus the outstanding ABL FILO Loans under the ABL Credit Facility (currently $2,730 million). As of November 2, 2024, the borrowing base was $2,589 million, reflecting the advance rates described above and $110 million of reserves, which is below the $2,730 million limit of availability. This resulted in total availability of $2,589 million for loans and letters of credit under the ABL Credit Facility. The Company’s unused credit under the ABL Credit Facility was as follows:
(in millions) | November 2, 2024
Total availability for ABL loans and letters of credit | $ | 2,589 |
ABL loans outstanding | 1,276 |
Letters of credit outstanding | 176 |
Unused credit | $ | 1,137 |
Senior Notes On October 22, 2020, the Company issued $500 million of unsecured 6.750% senior notes due October 15, 2028 (the “Senior Notes”). The Senior Notes are guaranteed by each of the Company’s subsidiaries that are borrowers under or that guarantee the ABL Credit Facility or the Term Loan Facility.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481544/470-10-50-6 Reference 2: 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