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Note 12 - Long-Term Debt | 12 Months Ended
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Jun. 30, 2013
Disclosure Text Block [Abstract] |
Long-term Debt [Text Block] | 12. Long-Term Debt Debt Obligations The following table presents a summary of the total balances outstanding for the Company’s debt obligations, their scheduled maturity dates and the weighted average interest rate for borrowings (including the effects of any interest rate swaps) as well as the applicable current portion of long-term debt:
|  |  |  |  |  | Weighted Average |  |  |  |
|  | Scheduled |  |  | Interest Rate as of |  |  | Principal Amounts as of |
|  | Maturity Date |  |  | June 30, 2013 |  |  | June 30, 2013 |  |  | June 24, 2012 |
ABL Revolver |  | May 2018 |  |  |  | 3.3% |  |  | $ | 52,500 |  |  | $ | 51,000 |
ABL Term Loan |  | May 2018 |  |  |  | 3.4% |  |  |  | 42,800 |  |  |  | 50,000 |
Term B Loan |  | — |  |  |  | — |  |  |  | — |  |  |  | 20,515 |
Term loan from unconsolidated affiliate |  | August 2014 |  |  |  | 3.0% |  |  |  | 1,250 |  |  |  | — |
Capital lease obligation |  | November 2027 |  |  |  | 4.6% |  |  |  | 1,203 |  |  |  | 37 |
Total debt |  |  |  |  |  |  |  |  |  |  | 97,753 |  |  |  | 121,552 |
Current portion of long-term debt |  |  |  |  |  |  |  |  |  |  | (65 | ) |  |  | (7,237 | )
Total long-term debt |  |  |  |  |  |  |  |  |  | $ | 97,688 |  |  | $ | 114,315 |
ABL Facility On May 24, 2012, the Company entered into a credit agreement (the “Credit Agreement”) to establish a $150,000 senior secured credit facility (“ABL Facility”) with Wells Fargo Bank, N.A. (“Wells Fargo”) and Bank of America, N.A. (“Bank of America”). The ABL Facility consists of a $100,000 revolving credit facility (“ABL Revolver”) and a $50,000 term loan (“ABL Term Loan”). In addition, the Company entered into a $30,000 term loan (“Term B Loan”) with MacKay Shields LLC, a Delaware limited liability company, solely in its capacity as investment advisor or subadviser with investment authority for certain discretionary client accounts. The purpose of entering into the ABL Facility and the Term B Loan was to, among other things, refinance the Company’s then existing indebtedness. The ABL Facility has subsequently been amended, and the Term B Loan has subsequently been repaid, as described later in this Note 12. The ABL Facility is secured by a first-priority perfected security interest in substantially all owned or hereafter acquired property and assets, together with all proceeds and products thereof, of Unifi, Inc., Unifi Manufacturing, Inc. and its subsidiary guarantors (the “Loan Parties”). It is also secured by a first-priority perfected security interest in all of the stock of (or other ownership interests in) each of the Loan Parties (other than the Company) and certain subsidiaries of the Loan Parties; provided, that only 65% of the stock of (or other ownership interests in) first tier controlled foreign corporations are pledged, together with all proceeds and products thereof. The ABL Facility is further secured by a first-priority lien on the Company’s limited liability company membership interest in Parkdale America, LLC (“PAL”). The Credit Agreement includes representations and warranties made by the Loan Parties, affirmative and negative covenants and events of default that are usual and customary for financings of this type. The Company’s ability to borrow under the ABL Revolver is limited to a borrowing base equal to specified percentages of eligible accounts receivable and inventory and is subject to certain conditions and limitations. As entered into on May 24, 2012, ABL Revolver borrowings bear interest at the London Interbank Offer Rate (“LIBOR”) plus an applicable margin of 1.75% to 2.25%, or the Base Rate plus an applicable margin of 0.75% to 1.25%, with interest currently being paid on a monthly basis. The applicable margin is based on the average quarterly excess availability under the ABL Revolver. The Base Rate means the greater of (i) the prime lending rate as publicly announced from time to time by Wells Fargo, (ii) the Federal Funds Rate plus 0.5%, and (iii) LIBOR plus 1.0%. There is also an unused line fee under the ABL Revolver of 0.25% to 0.375% of the unused line amount which is paid monthly. Subject to certain provisions, the ABL Term Loan may be prepaid at par, in whole or in part, at any time before the maturity date, at the Company’s discretion. Under the terms of the ABL Facility, the Company is required to hedge at least $50,000 of variable interest rate exposure so long as the outstanding principal of all indebtedness having variable interest rates exceeds $75,000. First Amendment On December 27, 2012, the Company entered into a First Amendment to Credit Agreement (“First Amendment”) to amend certain terms of the ABL Facility in connection with the Company’s then anticipated January 8, 2013 repayment of all amounts outstanding under the Term B Loan. The First Amendment revised the definition of fixed charges within the Credit Agreement for the ABL Facility and within the Company’s fixed charge coverage ratio calculation to exclude any mandatory or optional prepayments of the Term B Loan made after December 25, 2012 and prior to February 4, 2013, in an amount not to exceed $13,800, subject to the satisfaction of certain specified conditions (which were met by the Company). An amendment fee of $50 was paid to the participating lenders during the quarter ended March 24, 2013. Second Amendment On June 25, 2013, the Company entered into a Second Amendment to Credit Agreement (“Second Amendment”) to the ABL Facility with its lenders. The Second Amendment, among other things: (i) extended the maturity date of the ABL Facility from May 24, 2017 to May 24, 2018; (ii) authorized the ABL Term Loan amount to be increased from its then existing balance of $42,800 to $50,000; (iii) replaced the $1,800 quarterly ABL Term Loan principal payments with payments (if any) based on the amount that the outstanding balance of the ABL Term Loan exceeds a calculation of eligible collateral; (iv) reduced the ABL Term Loan interest rate from LIBOR plus an applicable margin of 2.25% to 2.75%, or the Base Rate plus an applicable margin of 1.25% to 1.75%, to LIBOR plus an applicable margin of 2.25%, or the Base Rate plus an applicable margin of 1.25%; (v) revised the definition of fixed charges for purposes of the Company’s fixed charge coverage ratio calculation to exclude ABL Term Loan voluntary principal prepayments and all principal prepayments of the Term B Loan; (vi) revised the definition of fixed charge coverage ratio to exclude share repurchases permitted under the Credit Agreement; (vii) increased the trigger level for the financial covenant which requires the Company to maintain a fixed charge coverage ratio on a monthly basis of at least 1.05 to 1.0 when excess availability under the ABL Revolver falls below the greater of $10,000 or 20% of the maximum revolver amount (from the previous trigger level of the greater of $10,000 or 15% of the maximum revolver amount); and (viii) required excess availability to not be less than $20,000 at any time during the thirty day period prior to the making of restricted payments consisting of dividends and share repurchases; (ix) reset the calculation of eligible machinery and equipment and eligible real property collateral specific to the ABL Term Loan with an increased advance rate that declines on a quarterly basis (the “Collateral Reset”); and (x) reduces the letter of credit sublimit to $10,000. Some of the foregoing items were subject to satisfaction of certain conditions, including updated real estate appraisals, which conditions were subsequently satisfied on July 19, 2013. In addition, the Second Amendment provides for another Collateral Reset after June 25, 2014, subject to satisfaction of certain additional conditions. An amendment fee of $125 was paid to the participating lenders during the quarter ended June 30, 2013. As of June 30, 2013, the Company was in compliance with all financial covenants, the excess availability under the ABL Revolver was $36,105, the fixed charge coverage ratio was 3.75 and the Company had $525 of standby letters of credit, none of which have been drawn upon. Term B Loan The Term B Loan had a maturity date of May 24, 2017, but was prepaid in full on January 8, 2013. The Term B Loan was secured by a first-priority lien on the Company’s limited liability company membership interest in PAL and a second-priority lien on the ABL Facility first-priority collateral described above. The Term B Loan carried interest at LIBOR plus 7.50% (with a LIBOR floor of 1.25%) with interest payable monthly, and it did not amortize. Term Loan from Unconsolidated Affiliate On August 30, 2012, a foreign subsidiary of the Company entered into an unsecured loan agreement with its unconsolidated affiliate U.N.F. Industries Ltd. (“UNF”) and borrowed $1,250. The loan bears interest at 3% with interest payable semi-annually. The loan does not amortize and has a maturity date of August 30, 2014, at which time the entire principal balance is due. Capital Lease Obligation On November 19, 2012, the Company entered into a capital lease with Salem Leasing Corporation for certain transportation equipment. The original amount due under the fifteen year term of the lease is $1,234 and payments are made monthly. The implicit annual interest rate under the lease is approximately 4.6%. Scheduled Debt Maturities The following table presents the scheduled maturities of the Company’s outstanding debt obligations for the following five fiscal years and thereafter:
|  | Scheduled Maturities on a Fiscal Year Basis |  |  |  |  |
|  | 2014 |  |  | 2015 |  |  | 2016 |  |  | 2017 |  |  | 2018 |  |  | Thereafter |
ABL Revolver |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 52,500 |  |  | $ | — |
ABL Term Loan |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 42,800 |  |  |  | — |
Capital lease obligation |  |  | 65 |  |  |  | 63 |  |  |  | 66 |  |  |  | 69 |  |  |  | 72 |  |  |  | 868 |
Term loan from unconsolidated affiliate |  |  | — |  |  |  | 1,250 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total |  | $ | 65 |  |  | $ | 1,313 |  |  | $ | 66 |  |  | $ | 69 |  |  | $ | 95,372 |  |  | $ | 868 |
Debt Financing Fees Debt financing fees are classified within Other non-current assets and consist of the following:
|  | June 30, 2013 |  |  | June 24, 2012 |
Balance at beginning of year |  | $ | 2,870 |  |  | $ | 3,245 |
Amounts paid related to debt refinancing |  |  | 113 |  |  |  | 3,127 |
Amounts paid related to debt modification |  |  | 197 |  |  |  | — |
Amortization charged to interest expense |  |  | (632 | ) |  |  | (871 | )
Amounts charged to extinguishment of debt due to refinancing |  |  | — |  |  |  | (2,250 | )
Amounts charged to extinguishment of debt due to prepayments |  |  | (431 | ) |  |  | (381 | )
Balance at end of year |  | $ | 2,117 |  |  | $ | 2,870 |
Amortization of the debt financing fees is classified within Interest expense and consists of the following:
|  | For the Fiscal Years Ended |
|  | June 30, 2013 |  |  | June 24, 2012 |  |  | June 26, 2011 |
Amortization of debt financing fees |  | $ | 632 |  |  | $ | 871 |  |  | $ | 415 |
Loss on Extinguishment of Debt The components of Loss on extinguishment of debt consist of the following:
|  | For the Fiscal Years Ended |
|  | June 30, 2013 |  |  | June 24, 2012 |  |  | June 26, 2011 |
Prepayment call premium for 11.5% Senior Secured Notes due May 2014 |  | $ | — |  |  | $ | 288 |  |  | $ | 2,587 |
Prepayment call premium and other costs for Term B Loan |  |  | 671 |  |  |  | 284 |  |  |  | — |
Non-cash charges due to write-off of debt financing fees |  |  | 431 |  |  |  | 2,631 |  |  |  | 750 |
Loss on extinguishment of debt |  | $ | 1,102 |  |  | $ | 3,203 |  |  | $ | 3,337 |

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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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