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Long-Term Debt | 12 Months Ended
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Jun. 24, 2018
Debt Disclosure [Abstract] |
Long-Term Debt | 12. Long-Term Debt Debt Obligations The following table presents the total balances outstanding for UNIFI’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:
|  |  |  | Weighted Average |  |  |  |  |  |  |  |
|  | Scheduled |  | Interest Rate as of |  | Principal Amounts as of |
|  | Maturity Date |  | June 24, 2018 |  | June 24, 2018 |  |  | June 25, 2017 |
ABL Revolver |  | March 2020 |  | 4.1% |  | $ | 28,100 |  |  | $ | 9,300 |
ABL Term Loan (1) |  | March 2020 |  | 3.7% |  |  | 85,000 |  |  |  | 95,000 |
Capital lease obligations |  | (2) |  | 3.8% |  |  | 18,107 |  |  |  | 25,168 |
Total debt |  |  |  |  |  |  | 131,207 |  |  |  | 129,468 |
Current portion of capital lease obligations |  |  |  |  |  |  | (6,996 | ) |  |  | (7,060 | )
Current portion of other long-term debt |  |  |  |  |  |  | (10,000 | ) |  |  | (10,000 | )
Unamortized debt issuance costs |  |  |  |  |  |  | (658 | ) |  |  | (1,026 | )
Total long-term debt |  |  |  |  |  | $ | 113,553 |  |  | $ | 111,382 |
(1) | Includes the effects of interest rate swaps.
(2) | Scheduled maturity dates for capital lease obligations range from July 2018 to November 2027.
ABL Facility On March 26, 2015, Unifi, Inc. and its subsidiary, Unifi Manufacturing, Inc. (“UMI”), 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 principal increases occurred in November 2015 and November 2016 as discussed in further detail below. The ABL Facility has a maturity date of March 26, 2020. The ABL Facility is secured by a first-priority perfected security interest in substantially all owned property and assets (together with all proceeds and products) of Unifi, Inc., UMI 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 Unifi, Inc.) 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 1.00 becomes effective. The Trigger Level as of June 24, 2018 was $23,125. In addition, the ABL Facility contains restrictions on particular payments and investments, including certain restrictions on the payment of dividends and share repurchases. Subject to specific provisions, the ABL Term Loan may be prepaid at par, in whole or in part, at any time before the maturity date, at UNIFI’s discretion. ABL Facility borrowings bear interest at the LIBOR plus an applicable margin of 1.5% to 2.0%, or the Base Rate (as defined below) plus an applicable margin of 0.5% to 1.0%, with interest currently being paid on a monthly basis. The applicable margin is based on (i) the excess availability under the ABL Revolver and (ii) the consolidated leverage ratio, calculated as of the end of each fiscal quarter. The Base Rate means the greater of (a) the prime lending rate as publicly announced from time to time by Wells Fargo, (b) the Federal Funds Rate plus 0.5% and (c) LIBOR plus 1.0%. UNIFI’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. There is also a monthly unused line fee under the ABL Revolver of 0.25%. As of June 24, 2018, UNIFI was in compliance with all financial covenants in the Amended Credit Agreement and the excess availability under the ABL Revolver was $53,245. At June 24, 2018, the fixed charge coverage ratio was 0.93 to 1.00 and UNIFI had $400 of standby letters of credit, none of which had been drawn upon. Management maintains the capability to quickly and easily improve the fixed charge coverage ratio utilizing existing cash and cash equivalents. On November 18, 2016, pursuant to the principal reset conditions of the Amended Credit Agreement, UNIFI, at its discretion, reset the ABL Term Loan principal balance to $100,000. In connection with the principal reset, the ABL Term Loan is subject to quarterly amortizing payments of $2,500. Capital Lease Obligations There were no capital leases established in fiscal 2018. During fiscal 2017, UNIFI recorded capital leases with an aggregate present value of $14,070. The weighted average interest rate for these capital leases is 3.9%. Scheduled Debt Maturities The following table presents the scheduled maturities of UNIFI’s outstanding debt obligations for the following five fiscal years and thereafter:
|  | Fiscal 2019 |  |  | Fiscal 2020 |  |  | Fiscal 2021 |  |  | Fiscal 2022 |  |  | Fiscal 2023 |  |  | Thereafter |
ABL Revolver |  | $ | — |  |  | $ | 28,100 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
ABL Term Loan |  |  | 10,000 |  |  |  | 75,000 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Capital lease obligations |  |  | 6,996 |  |  |  | 5,519 |  |  |  | 2,624 |  |  |  | 2,417 |  |  |  | 91 |  |  |  | 460 |
Total |  | $ | 16,996 |  |  | $ | 108,619 |  |  | $ | 2,624 |  |  | $ | 2,417 |  |  | $ | 91 |  |  | $ | 460 |

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