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Long-term Debt | 6 Months Ended
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Nov. 24, 2024
Debt Disclosure [Abstract] |
Long-term Debt | Long-term Debt Long-term debt, net consists of the following:
| November 24, 2024 |  | May 26, 2024
Term loan credit facility | $ | 165,274 |  |  | $ | 157,313 |
Equipment financing | 6,764 |  |  | 7,150 |
Total principal amount of long-term debt | 172,038 |  |  | 164,463 |
Less: unamortized debt issuance costs | (453) |  |  | (504) |
Less: debt discount | (60,284) |  |  | (62,367) |
Total long-term debt, net of issuance costs and discount | 111,301 |  |  | 101,592 |
Less: Current portion of long-term debt, related party | (773) |  |  | (773) |
Long-term debt, less current portion, net, related party | $ | 110,528 |  |  | $ | 100,819 |
Revolving credit facility | $ | 8,500 |  |  | $ | 19,691 |
The future minimum principal payments under the Company’s term loan credit facility and equipment financing liability for each year presented are as follows:
Remainder of Fiscal year 2025 | $ | 387 |
Fiscal year 2026 | 773 |
Fiscal year 2027 | 773 |
Fiscal year 2028 | 773 |
Fiscal year 2029 | 166,047 |
Fiscal year 2030 | 773 |
Thereafter | 2,512 |
Total | $ | 172,038 |
Term Loan Credit Facility On May 22, 2023, the Company, Curation Foods, and Lifecore Biomedical Operating Company, Inc. (the “Borrowers”), certain of the Company’s other subsidiaries, as guarantors, and Alcon Research, LLC (“Alcon”), as administrative agent, collateral agent and lender, entered into a Credit and Guaranty Agreement (the “Term Loan Credit Facility”). The Term Loan Credit Facility refinanced in full all obligations of the Company and their subsidiaries under its prior term loan credit facility. Upon entry into the Term Loan Credit Facility, the prior term loan credit facility was terminated and all noncompliance with debt covenants were thereby cured. The Term Loan Credit Facility provided for up to $142,270 in term loans, excluding PIK interest added to the outstanding balance. The obligations under the Term Loan Credit Facility mature on May 22, 2029, and is secured by the same collateral that secures the Revolving Credit Facility (as defined below). As of November 24, 2024 and May 26, 2024, the Company’s effective annual interest rate under the Term Loan Credit Facility was 22.5% for both periods. The annual stated rate is 10.0%. On November 26, 2024, the Company entered into certain amendments to the Term Loan Credit Facility. Refer to Note 17 - Subsequent Events for additional information. Equipment Financing On May 22, 2023, the Company entered into an equipment financing agreement with Alcon, totaling $7,730. The agreement calls for 40 quarterly principal payments of $193, plus 6% interest. Revolving Credit Facility On May 22, 2023, the Borrowers and certain of the Company’s other subsidiaries, as guarantors, entered into a Limited Waiver, Consent and Fifth Amendment to the credit agreement with BMO, as lender (the “Revolving Credit Facility”). As of November 24, 2024 and May 26, 2024, the Company’s effective annual interest rate under the Revolving Credit Facility was linked to the Secured Overnight Financing Rate (SOFR), and was approximately 8% for both periods. On November 26, 2024, the Company entered into certain amendments to the Revolving Credit Facility. Refer to Note 17 - Subsequent Events for additional information. Financial Covenants Compliance Status and Borrowing Capacity As of November 24, 2024, the Company was in compliance with all financial covenants under the Term Loan Credit Facility and Revolving Credit Facility. As of November 24, 2024, the Company had approximately $20,900 available for borrowing under our Revolving Credit Facility and the Term Loan Credit Facility was fully drawn.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481544/470-10-50-6 Reference 2: 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