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Note 6 - Long-term Debt | 12 Months Ended
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Mar. 31, 2020
Notes to Financial Statements |
Long-term Debt [Text Block] |
6. Long-Term Debt
|  | 2020 |  |  | 2019 |
|  | (In thousands) |
Revolving credit facility, 2.59% and 4.00%, due through 2022 |  | $ | 106,924 |  |  | $ | 155,278 |
Farm Credit term loan, 4.54% and 4.77%, due 2022 |  |  | 99,941 |  |  |  | 99,906 |
Bluegrass tax exempt bonds, 3.01% and 3.19%, due 2033 |  |  | 10,000 |  |  |  | 10,000 |
Secured promissory note, 6.35%, due through 2020 |  |  | - |  |  |  | 262 |
Economic development note, 2.00%, due through 2021 |  |  | 500 |  |  |  | 583 |
Other |  |  | 216 |  |  |  | 216 |
Total |  |  | 217,581 |  |  |  | 266,245 |
Less current portion |  |  | 500 |  |  |  | 345 |
Long-term debt |  | $ | 217,081 |  |  | $ | 265,900 |
See Note 5, Revolving Credit Facility, for discussion of the Revolver. The Company’s debt agreements, including the Revolver and term loan, contain covenants that restrict the Company’s ability to incur additional indebtedness, pay dividends on the Company’s capital stock, make other restricted payments, including investments, sell the Company’s assets, incur liens, transfer all or substantially all of the Company’s assets and enter into consolidations or mergers. The Company’s debt agreements also require the Company to meet certain financial covenants, including a minimum fixed charge coverage ratio, a minimum EBITDA and minimum tangible net worth. The Revolver also contains borrowing base requirements related to accounts receivable and inventories. These financial requirements and ratios generally become more restrictive over time and are subject to allowances for seasonal fluctuations. The most restrictive financial covenant in the debt agreements is the EBITDA within the Farm Credit term loan which for fiscal year end 2020 will be $45 million and will be greater than $45 million, thereafter. The Company computes its financial covenants as if the Company were on the FIFO method of inventory accounting. The Company has met for all such financial covenants as of March 31, 2020. The Company's debt agreements limit the payment of dividends and other distributions. There is an annual total distribution limitation of $50,000, less aggregate annual dividend payments totaling $23,000 that the Company presently pays on two outstanding classes of preferred stock. On December 9, 2016, the Company entered into a $100.0 million unsecured term loan payable to Farm Credit East, ACA, with a variable interest rate. The maturity date for this term loan is of December 9, 2021. The Company incurred financing costs totaling $0.2 million which have been classified as a discount to the debt. See Note 18, Subsequent Event, for additional information relating to this term loan. The Company assumed a tax-exempt bond with the Truitt acquisition on April 3, 2017. At March 31, 2020 the total outstanding of this bond is $10.0 million. The bond has a variable interest rate with a maturity date of October 1, 2032. The carrying value of assets pledged for secured debt, including the Revolver, is $567.3 million.
Debt repayment requirements for the next five fiscal years are (in thousands):
Years ending March 31: |  |  |  |
2021 |  | $ | 500 |
2022 |  |  | 206,865 |
2023 |  |  | - |
2024 |  |  | - |
2025 |  |  | - |
Thereafter |  |  | 10,216 |
Total |  | $ | 217,581 |

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