Note 4 - Revolving Credit Facility

9 Months Ended

Dec. 30, 2017

Debt Disclosure [Text Block]

Revolving Credit Facility

The Company completed the closing of a new

five

-year revolving credit facility (“Revolver”) on

July 5, 2016.

Maximum borrowings under the Revolver total

$400,000,000

from

April

through

July

and

$500,000,000

from

August

through

March.

The Revolver balance as of

December 30, 2017

was

$290,196,000

and is included in Long-Term Debt in the accompanying Condensed Consolidated Balance Sheet since the Revolver matures on

July 5, 2021.

The Company utilizes its Revolver for general corporate purposes, including seasonal working capital needs, to pay debt principal and interest obligations, and to fund capital expenditures and acquisitions. Seasonal working capital needs are affected by the growing cycles of the vegetables and fruits the Company processes. The majority of vegetable and fruit inventories are produced during the months of

June

through

November

and are then sold over the following year. Payment terms for vegetable and fruit produce are generally

three

months but can vary from a few days to

seven

months. Accordingly, the Company’s need to draw on the Revolver

may

fluctuate significantly throughout the year.

The de

crease in average amount of Revolver borrowings during the

first

nine

months of fiscal

2018

compared to the

first

nine

months of fiscal

2017

was attributable to the

$100,000,000

term loan from Farm Credit obtained in December

2016

less the cash paid for the Truitt acquisition of

$14,420,000

made during the

first

nine

months of fiscal

2018,

Accounts Receivable which are

$7,168,000

lower than the same period last year (excluding the amount from the acquisition), and total Inventories, excluding the inventories of the acquisition, which are

$37,674,000

higher than the same period last year, partially offset by net earnings in the last

twelve

months ended

December 30, 2017

$4,126,000.

General terms of the Revolver include payment of interest at LIBOR plus a defined spread.

The following table documents the quantitative data for

Revolver borrowings during the

third

quarter and year-to-date periods of fiscal

2018

and fiscal

2017:

	Third Quarte r						Year-to-Dat e
	201 8			201 7			201 8			201 7
	(In thousands )						(In thousands )
Reported end of period :
Outstanding borrowing s	$	290,196		$	232,586		$	290,196		$	232,586
Weighted average interest rat e		3.04	%		2.00	%		3.04	%		2.00	%
Reported during the period :
Maximum amount of borrowing s	$	296,088		$	349,710		$	296,088		$	361,800
Average outstanding borrowing s	$	280,960		$	301,395		$	246,414		$	289,949
Weighted average interest rat e		2.82	%		1.89	%		2.59	%		1.88	%