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Long-Term Debt | 12 Months Ended
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Jun. 30, 2019
Debt Disclosure [Abstract] |
Long-Term Debt | 13. 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 30, 2019 |  | June 30, 2019 |  |  | June 24, 2018 |
ABL Revolver |  | December 2023 |  | 3.7% |  | $ | 19,400 |  |  | $ | 28,100 |
ABL Term Loan (1) |  | December 2023 |  | 3.3% |  |  | 97,500 |  |  |  | 85,000 |
Capital lease obligations |  | (2) |  | 3.9% |  |  | 11,118 |  |  |  | 18,107 |
Total debt |  |  |  |  |  |  | 128,018 |  |  |  | 131,207 |
Current ABL Term Loan |  |  |  |  |  |  | (10,000 | ) |  |  | (10,000 | )
Current portion of capital lease obligations |  |  |  |  |  |  | (5,519 | ) |  |  | (6,996 | )
Unamortized debt issuance costs |  |  |  |  |  |  | (958 | ) |  |  | (658 | )
Total long-term debt |  |  |  |  |  | $ | 111,541 |  |  | $ | 113,553 |
(1) | Includes the effects of interest rate swaps.
(2) | Scheduled maturity dates for capital lease obligations range from August 2019 to November 2027.
ABL Facility On December 18, 2018, Unifi, Inc. and certain of its subsidiaries entered into a Third Amendment to Amended and Restated Credit Agreement and Second Amendment to Amended and Restated Guaranty and Security Agreement (the “2018 Amendment”). The 2018 Amendment amended the Amended and Restated Credit Agreement, dated as of March 26, 2015, by and among Unifi, Inc. and a syndicate of lenders, as previously amended (as further amended by the 2018 Amendment, the “Credit Agreement”). The Credit Agreement provides for a $200,000 senior secured credit facility (the “ABL Facility”), including 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”). The ABL Facility has a maturity date of December 18, 2023. The 2018 Amendment made the following changes to the Credit Agreement, among others: (i) extended the maturity date from March 26, 2020 to December 18, 2023 and (ii) decreased the Applicable Margin (as defined in the Credit Agreement) pricing structure for Base Rate Loans (as defined in the Credit Agreement) and LIBOR Rate Loans (as defined in the Credit Agreement) by 25 basis points. In addition, in connection with the 2018 Amendment, the principal amount of the ABL Term Loan was reset from $80,000 to $100,000. Net proceeds from the ABL Term Loan reset were used to pay down the amount outstanding on the ABL Revolver. Additionally, the 2018 Amendment resulted in a loss on extinguishment of debt of $131 in connection with the write-off of certain unamortized debt issuance costs. 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., Unifi Manufacturing, Inc. and certain subsidiary guarantors (collectively, the “Loan Parties”). It is also secured by a first-priority security interest in all (or 65% in the case of UNIFI’s first-tier controlled foreign subsidiary, 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 (as defined in the Credit Agreement), a financial covenant requiring the Loan Parties to maintain a fixed charge coverage ratio on a quarterly basis of at least 1.05 to 1.00 becomes effective. The Trigger Level as of June 30, 2019 was $24,688. 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 LIBOR plus an applicable margin of 1.25% to 1.75%, or the Base Rate (as defined below) plus an applicable margin of 0.25% to 0.75%, 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 Bank, National Association, (b) the Federal Funds Rate (as defined in the Credit Agreement) 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 inventories 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 30, 2019, UNIFI was in compliance with all financial covenants in the Credit Agreement and the excess availability under the ABL Revolver was $61,501. At June 30, 2019, the fixed charge coverage ratio was 1.22 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. Capital Lease Obligations There were no significant capital leases established in fiscal 2019 or 2018. 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 2020 |  |  | Fiscal 2021 |  |  | Fiscal 2022 |  |  | Fiscal 2023 |  |  | Fiscal 2024 |  |  | Thereafter |
ABL Revolver |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 19,400 |  |  | $ | — |
ABL Term Loan |  |  | 10,000 |  |  |  | 10,000 |  |  |  | 10,000 |  |  |  | 10,000 |  |  |  | 57,500 |  |  |  | — |
Capital lease obligations |  |  | 5,519 |  |  |  | 2,623 |  |  |  | 2,417 |  |  |  | 90 |  |  |  | 95 |  |  |  | 374 |
Total |  | $ | 15,519 |  |  | $ | 12,623 |  |  | $ | 12,417 |  |  | $ | 10,090 |  |  | $ | 76,995 |  |  | $ | 374 |

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