XML 27 R15.htm IDEA: XBRL DOCUMENT
v3.3.1.900

Note 9 - Long-term Debt | 6 Months Ended
--- | ---
Dec. 27, 2015
Notes to Financial Statements |
Long-term Debt [Text Block] | 9 . Long-Term Debt Debt Obligations The following table presents the total balances outstanding for the Company’s debt obligations, their scheduled maturity dates and the weighted average interest rates for borrowings as well as the applicable current portion of long-term debt:
|  |  |  |  |  |  |  |  | Principal Amounts as of |
|  | Scheduled Maturity Date |  |  | Weighted Average Interest Rate as of December 2 7 , 201 5 (1) |  |  | Dece mber 2 7 , 201 5 |  |  | June 2 8 , 201 5 |
ABL Revolver |  | March 2020 |  |  | 2.3% |  |  | $ | 16,200 |  |  | $ | 5,000 |
ABL Term Loan |  | March 2020 |  |  | 2.2% |  |  |  | 95,000 |  |  |  | 82,125 |
Renewables’ promissory note |  | September 2020 |  |  | 3.0% |  |  |  | 135 |  |  |  | — |
Renewables’ term loan |  | August 2022 |  |  | 3.5% |  |  |  | 4,000 |  |  |  | — |
Term loan from unconsolidated affiliate |  | August 2016 |  |  | 3.0% |  |  |  | 1,250 |  |  |  | 1,250 |
Capital lease obligations |  | (2) |  |  | (3) |  |  |  | 17,917 |  |  |  | 15,735 |
Construction financing |  | (4) |  |  | (4) |  |  |  | 2,385 |  |  |  | — |
Total debt |  |  |  |  |  |  |  |  |  |  | 136,887 |  |  |  | 104,110 |
Current portion of capital lease obligations |  |  |  |  |  |  |  |  |  |  | (4,274 | ) |  |  | (3,385 | )
Current portion of long-term debt |  |  |  |  |  |  |  |  |  |  | (10,776 | ) |  |  | (9,000 | )
Total long-term debt |  |  |  |  |  |  |  |  |  | $ | 121,837 |  |  | $ | 91,725 |
| (1) | The weighted average interest rate as of December 27, 2015 for the ABL Term Loan includes the effects of the interest rate swap with a notional balance of $50,000.
| (2) | Scheduled maturity dates for capital lease obligations range from January 2017 to November 2027.
| (3) | Interest rates for capital lease obligations range from 2.3% to 4.6%.
| (4) | Refer to the discussion under the subheading “— Construction Financing ” for further information.
On March 26, 2015, the Company and its subsidiary, Unifi Manufacturing, Inc., entered into an Amended and Restated Credit Agreement (as subsequently amended, the “Amended Credit Agreement”) for a $200,000 senior secured credit facility (the “ABL Facility”) with a syndicate of lenders. The ABL Facility consists of a $100,000 revolving credit facility (the “ABL Revolver”) and a term loan that can be reset up to a maximum amount of $100,000, once per fiscal year, if certain conditions are met (the “ABL Term Loan”). Such a principal increase occurred during the quarter ended December 27, 2015, as described below under the subheading “— Second Amendment ”. The ABL Facility has a maturity date of March 26, 2020. The Amended Credit Agreement replaced a previous senior secured credit facility dated May 24, 2012 with a similar syndicate of lenders, which, after multiple amendments, would have matured on March 28, 2019 and consisted of a $100,000 revolving credit facility and a $90,000 term loan. As used herein, the terms “ABL Facility,” “ABL Revolver” and “ABL Term Loan” shall mean the senior secured credit facility, the revolving credit facility or the term loan, respectively, under the Amended Credit Agreement or the previous senior secured credit facility, as applicable. ABL Facility The ABL Facility is secured by a first-priority perfected security interest in substantially all owned property and assets (together with proceeds and products) of Unifi, Inc., Unifi Manufacturing, Inc. and certain subsidiary guarantors (the “Loan Parties”). It is also secured by a first-priority security interest in all (or 65% in the case of certain first-tier controlled foreign corporations, as required by the lenders) 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, together with all proceeds and products thereof. If excess availability under the ABL Revolver falls below the defined Trigger Level, a financial covenant requiring the Loan Parties to maintain a fixed charge coverage ratio on a monthly basis of at least 1.05 to 1.0 becomes effective. The Trigger Level as of December 27, 2015 was $24,375. In addition, the ABL Facility contains restrictions on certain payments and investments, including restrictions on the payment of dividends and share repurchases. 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. As of December 27, 2015, the Company was in compliance with all financial covenants and the excess availability under the ABL Revolver was $65,125. At December 27, 2015 the fixed charge coverage ratio was 2.8 to 1.0 and the Company had $210 of standby letters of credit, none of which have been drawn upon. Second Amendment On November 19, 2015, the Company entered into the Second Amendment to Amended and Restated Credit Agreement dated March 26, 2015 (“Second Amendment”). The Second Amendment increased the percentage applied to real estate valuations, on a one-time basis, from 60% to 75%, for purposes of calculating the Term Loan collateral. Simultaneous to entering into the Second Amendment, the Company entered into the Fourth Amended and Restated Term Note, thereby resetting the ABL Term Loan balance to $95,000. Pursuant to the Second Amendment, the ABL Term Loan is subject to quarterly amortizing payments of $2,375. Renewables’ Promissory Note In September 2015, Renewables delivered a promissory note in the amount of $135, and cash, to an unrelated third party for the purchase of certain land, consisting of thirty-seven acres located in Seven Springs, North Carolina, valued at $191. Such promissory note bears fixed interest at 3.0%, with principal and interest payable annually over a five-year period. Recourse does not extend beyond the assets of Renewables. Renewables’ Term Loan In September 2015, Renewables entered into a secured debt financing arrangement consisting of a master loan agreement and corresponding term loan supplement, with unrelated parties, with a borrowing capacity of up to $4,000. In October 2015, Renewables borrowed $4,000. The agreements include representations and warranties made by Renewables, financial covenants, affirmative and negative covenants and events of default that are usual and customary for financings of this type. Borrowings bear interest at LIBOR plus an applicable margin of 3.25%, payable monthly in arrears. Lender recourse does not extend beyond the assets of Renewables. Capital Lease Obligations During the six months ended December 27, 2015, the Company entered into capital leases with an aggregate present value of $4,154. Fixed interest rates for these capital leases range from 3.4% to 3.8%, with maturity dates in August 2020. Construction Financing In December 2015, the Company entered into an agreement with a third party lender that provides for construction-period financing for certain build-to-suit assets. The Company will record project costs to construction in progress and the corresponding liability to construction financing (within long-term debt). The agreement provides for monthly, interest-only payments during the construction period, at a rate of 3.5%, and contains terms customary for a financing of this type. The agreement provides for 60 monthly payments, which will commence at the earlier of the completion of the construction period or July 1, 2017, with an interest rate of 3.2%. In connection with this construction financing arrangement, during the quarter ended December 27, 2015, the Company (i) recorded $210 of deferred financing fees and (ii) recorded long-term debt of $2,385 (to reflect $790 of proceeds for construction financing and $1,595 for construction in progress paid by the third party lender). Scheduled Debt Maturities The following table presents the scheduled maturities of the Company’s outstanding debt obligations for the remainder of fiscal year 2016 and the fiscal years thereafter:
|  | Scheduled Maturities on a Fiscal Year Basis |
|  | 2016 |  |  | 201 7 |  |  | 201 8 |  |  | 20 19 |  |  | 202 0 |  |  | Thereafter |
ABL Revolver |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 16,200 |  |  | $ | — |
ABL Term Loan |  |  | 4,750 |  |  |  | 9,500 |  |  |  | 9,500 |  |  |  | 9,500 |  |  |  | 61,750 |  |  |  | — |
Renewables’ promissory note |  |  | — |  |  |  | 25 |  |  |  | 26 |  |  |  | 27 |  |  |  | 28 |  |  |  | 29 |
Renewables’ term loan |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1,111 |  |  |  | 2,889 |
Term loan from unconsolidated affiliate |  |  | — |  |  |  | 1,250 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Capital lease obligations |  |  | 2,120 |  |  |  | 4,261 |  |  |  | 4,128 |  |  |  | 4,058 |  |  |  | 2,542 |  |  |  | 808 |
Total (1) |  | $ | 6,870 |  |  | $ | 15,036 |  |  | $ | 13,654 |  |  | $ | 13,585 |  |  | $ | 81,631 |  |  | $ | 3,726 |
| (1) | Total reported here excludes $2,385 for construction financing, described above.

X
- References No definition available. + Details
Name: | us-gaap_DisclosureTextBlockAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for long-term debt. + References Reference 1: 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
Name: | us-gaap_LongTermDebtTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration