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Short-Term Borrowings and Long-Term Debt
 9 Months Ended
Mar. 04, 2023
Debt Disclosure [Abstract]  
Short-Term Borrowings and Long-Term Debt Short-Term Borrowings and Long-Term Debt
Short-term borrowings and long-term debt as of March 4, 2023 and May 28, 2022 consisted of the following:
(In millions)March 4, 2023May 28, 2022
Syndicated revolving line of credit, due July 2026$468.5 $413.0 
Term Loan A, 6.4821%, due July 2026
375.0 390.0 
Term Loan B, 6.7321%, due July 2028
617.2 621.8 
Supplier financing program2.1 3.1 
Total debt$1,462.8 $1,427.9 
Less: Unamortized discount and issuance costs(16.8)(19.4)
Less: Current debt(30.9)(29.3)
Long-term debt$1,415.1 $1,379.2 
In connection with the acquisition of Knoll, in July, 2021, the Company entered into a credit agreement that provided for a syndicated revolving line of credit and two term loans. The revolving line of credit provides the Company with up to $725 million in revolving variable rate interest borrowing capacity that matures in July 2026, replacing the previous $500 million syndicated revolving line of credit. The term loans consist of a five-year senior secured term loan "A" facility with an aggregate principal amount of $400 million and a seven-year senior secured term loan "B" facility with an aggregate principal amount of $625 million, the proceeds of which were used to finance a portion of the cash consideration for the acquisition of Knoll, for the repayment of certain debt of Knoll and to pay fees, costs and expenses related thereto. In January 2023, the company entered into the 2nd Amendment to the credit agreement which transitioned the benchmark rate from LIBOR to the Secured Overnight Financing Rate ("SOFR") for U.S. dollar borrowings. SOFR is the recommended risk-free reference rate of the Federal Reserve Board and Alternative Reference Rates Committee, as defined within the credit agreement. During the nine months ended February 26, 2022, the Company repaid $64 million of private placement notes due May 20, 2030 and a loss on extinguishment of debt of approximately $13.4 million was recognized as part of the repayment of the private placement notes, which represented the premium on early redemption. The Company made total principal payments on term loan "A" and "B" during the nine months ended March 4, 2023 in the amount of $15.0 million and $4.7 million, respectively. The Company made total principal payments on term loan "A" and "B" during the nine months ended February 26, 2022 in the amount of $5.0 million and $1.6 million, respectively.
(In millions)March 4, 2023May 28, 2022
Syndicated revolving line of credit borrowing capacity$725.0 $725.0 
Less: Borrowings under the syndicated revolving line of credit468.5 413.0 
Less: Outstanding letters of credit14.1 15.4 
Available borrowings under the syndicated revolving line of credit
$242.4 $296.6 
Supplier Financing Program
The Company has an agreement with a third-party financial institution that allows certain participating suppliers the ability to finance payment obligations of the Company. Under this program, participating suppliers may finance payment obligations of the Company, prior to their scheduled due dates, at a discounted price to the third-party financial institution.
The Company has lengthened the payment terms for certain suppliers that have chosen to participate in the program. As a result, certain amounts due to suppliers have payment terms that are longer than standard industry practice and as such, these amounts have been excluded from “Accounts payable” in the Condensed Consolidated Balance Sheets as the amounts have been accounted for by the Company as current debt, within “Short-term borrowings and current portion of long-term debt”. As of March 4, 2023, the liability related to the supplier financing program is $2.1 million.