STRATTEC has a $40 million secured revolving credit facility (the “STRATTEC Credit Facility”) with BMO Harris Bank N.A. ADAC-STRATTEC LLC has a $25 million secured revolving credit facility (the “ADAC-STRATTEC Credit Facility”) with BMO Harris Bank N.A., which is guaranteed by STRATTEC. The credit facilities expire on August 1, 2024. Borrowings under either credit facility are secured by our U.S. cash balances, accounts receivable, inventory, and fixed assets located in the U.S. Interest on borrowings under the STRATTEC Credit Facility were at varying rates based, at our option, on LIBOR plus 1.25 percent or the bank’s prime rate through February 22, 2023. Interest on borrowings under the ADAC-STRATTEC Credit Facility were at varying rates based, at our option, on LIBOR plus 1.25 percent or the bank’s prime rate through February 6, 2023. Subsequent to these dates, interest on borrowings under both credit facilities were at varying rates based, at our option, on SOFR plus 1.35 percent or the bank's prime rate. Both credit facilities contain a restrictive financial covenant that requires the applicable borrower to maintain a minimum net worth level. The ADAC-STRATTEC Credit Facility includes an additional restrictive financial covenant that requires the maintenance of a minimum fixed charge coverage ratio. As of July 2, 2023, we were in compliance with all financial covenants required by these credit facilities. Refer to further discussion under Subsequent Events included herein.

Outstanding borrowings under the credit facilities referenced in the above paragraph as of the end of 2023 and 2022 were as follows (thousands of dollars):


	July 2, 2023		July 3, 2022
STRATTEC Credit Facility	$	—	$	—
ADAC-STRATTEC Credit Facility		13,000		11,000
	$	13,000	$	11,000

Average outstanding borrowings and the weighted average interest rate under each such credit facility during 2023 and 2022 were as follows (thousands of dollars):


	Average Outstanding Borrowings				Weighted Average Interest Rate
	Years Ended				Years Ended
	July 2, 2023		July 3, 2022		July 2, 2023			July 3, 2022
STRATTEC Credit Facility	$	5,365	$	332		5.7	%		2.0	%
ADAC-STRATTEC Credit Facility	$	12,426	$	14,248		5.3	%		1.5	%

We believe that the credit facilities referenced above are adequate, along with existing cash balances and cash flow from operations, to meet our anticipated capital expenditure, working capital, dividend and operating expenditure requirements.