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LONG-TERM DEBT | 12 Months Ended
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Jun. 27, 2013
Debt Disclosure [Abstract] |
LONG-TERM DEBT | NOTE 5 — LONG-TERM DEBT Long-term debt consists of the following:
|  | June 27, 2013 |  |  | June 28, 2012 |
Mortgage Facility (“Tranche A”), collateralized by real property, due in monthly principal installments of $200 plus interest at 7.63% per annum through February 2023 with a final principal payment of $600 on March 1, 2023 |  | $ | 23,800 |  |  | $ | 26,000 |
Mortgage Facility (“Tranche B”), collateralized by real property, due in monthly principal installments of $50 plus interest at the greater of one month LIBOR plus 4.00% per annum or 5.00% through February 2023 with a final principal payment of $150 on March 1, 2023 |  |  | 5,950 |  |  |  | 6,500 |
Industrial development bonds, collateralized by building, machinery and equipment with a cost aggregating $8,000 |  |  | — |  |  |  | 3,290 |
Selma, Texas facility financing obligation to related parties, due in monthly installments of $121 through September 1, 2031 |  |  | 12,585 |  |  |  | 12,882 |
Equipment loan, collateralized by machinery and equipment, monthly installments of $30 through December 2012 |  |  | — |  |  |  | 148 |
Capitalized equipment leases |  |  | 20 |  |  |  | 110 |
|  |  | 42,355 |  |  |  | 48,930 |
Less: Current maturities |  |  | (8,690 | ) |  |  | (12,724 | )
Total long-term debt |  | $ | 33,665 |  |  | $ | 36,206 |
We are subject to periodic interest rate resets for each of Tranche A and Tranche B. Specifically, on March 1, 2018 (the “Tranche A Reset Date”) and March 1, 2014 and every two years thereafter (each, a “Tranche B Reset Date”), the Mortgage Lender may reset the interest rates for each of Tranche A and Tranche B, respectively, in its sole and absolute discretion. If the reset interest rate for either Tranche A or Tranche B is unacceptable to us and we (i) do not have sufficient funds to repay amounts due with respect to Tranche A or Tranche B on the Tranche A Reset Date or Tranche B Reset Date, in each case, as applicable, or (ii) are unable to refinance amounts due with respect to Tranche A or Tranche B on the Tranche A Reset Date or Tranche B Reset Date, in each case, as applicable, on terms more favorable than the reset interest rates, then, depending on the extent of the changes in the reset interest rates, our interest expense could increase materially. Tranche A under the Mortgage Facility accrues interest at a fixed interest rate of 7.63% per annum, payable monthly. As mentioned above, such interest rate may be reset by the Mortgage Lender on the Tranche A Reset Date. Tranche B under the Mortgage Facility accrues interest, as reset on March 1, 2012, at a floating rate of the greater of one month LIBOR plus 4.00% per annum or 5.00%, payable monthly. The margin on such floating rate may be reset by the Mortgage Lender on each Tranche B Reset Date; provided, however, that the Mortgage Lender may also change the underlying index on each Tranche B Reset Date occurring on or after March 1, 2016. We do not currently anticipate that any change in the floating rate or the underlying index will have a material adverse effect upon our business, financial condition or results of operations. The terms of the Mortgage Facility contain covenants that require us to maintain a specified net worth of $110,000 and maintain the Encumbered Properties. The Mortgage Facility is secured, in part, by the Old Elgin Site. We must obtain the consent of the Mortgage Lender prior to the sale of the Old Elgin Site. A portion of the Old Elgin Site contains an office building (which we began renting during the third quarter of fiscal 2007) that will likely be included in any future sale. The Mortgage Lender is entitled to require immediate repayment of our obligations under the Mortgage Facility in the event we default in the payments required under the Mortgage Facility, non-compliance with the covenants or upon the occurrence of certain other defaults by us under the Mortgage Facility. As of June 27, 2013, we were in compliance with all covenants under the Mortgage Facility. We currently believe that we will be in compliance with the financial covenants in the Mortgage Facility for the foreseeable future and therefore $21,400 has been classified as long-term debt as of June 27, 2013 which represents scheduled principal payments under Tranche A that are due beyond twelve months. All $5,950 outstanding under Tranche B is classified as short-term debt as of June 27, 2013, since the Mortgage Lender has the option to use any proceeds of any sale of the site that was originally purchased by the Company in Elgin, Illinois to reduce the amount outstanding under Tranche B. We financed the construction of a peanut shelling plant in Bainbridge, Georgia with industrial development bonds in 1987. On June 1, 2011, we remarketed the bonds, resetting the interest rate at 3.00% through May 2013, and at a market rate to be determined thereafter. On June 1, 2013, and on each subsequent interest reset date for the bonds, we are required to redeem the bonds at face value plus any accrued and unpaid interest, unless a bondholder elects to retain his or her bonds. We had the option at any time, however, subject to certain conditions, to redeem the bonds at face value plus accrued interest, if any. We exercised that option in June 2013 and paid $3,290 to fully redeem the bonds. In September 2006, we sold our Selma, Texas properties to two related party partnerships for $14,300 and are leasing them back. The selling price was determined by an independent appraiser to be the fair market value which also approximated our carrying value. The lease for the Selma, Texas properties has a ten-year term at a fair market value rent with three five-year renewal options. Also, we have an option to purchase the properties from the partnerships after five years at 95% (100% in certain circumstances) of the then fair market value, but not to be less than the $14,300 purchase price. The financing obligation is being accounted for similar to the accounting for a capital lease, whereby the $14,300 was recorded as a debt obligation, as the provisions of the arrangement are not eligible for sale-leaseback accounting. As of June 27, 2013, $12,585 of the debt obligation was outstanding. Aggregate maturities of long-term debt are as follows for the fiscal years ending:
June 26, 2014 |  | $ | 8,690 |
June 25, 2015 |  |  | 2,749 |
June 30, 2016 |  |  | 2,776 |
June 29, 2017 |  |  | 2,807 |
June 28, 2018 |  |  | 2,841 |
Thereafter |  |  | 22,492 |
|  | $ | 42,355 |

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- Definition The entire disclosure for long-term debt. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 22 -Article 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
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