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Long-Term Debt | 9 Months Ended
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Mar. 27, 2022
Debt Disclosure [Abstract] |
Long-Term Debt | 11. 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 |  | March 27, 2022 |  | March 27, 2022 |  |  | June 27, 2021 |
ABL Revolver |  | December 2023 |  |  | 2.0 | % |  |  | $ | 18,500 |  |  | $ | — |
ABL Term Loan |  | December 2023 |  |  | 3.2 | % | (1) |  |  | 70,000 |  |  |  | 77,500 |
Finance lease obligations |  | (2) |  |  | 3.5 | % |  |  |  | 7,363 |  |  |  | 8,475 |
Construction financing |  | (3) |  |  | 1.5 | % |  |  |  | 1,458 |  |  |  | 882 |
Total debt |  |  |  |  |  |  |  |  |  | 97,321 |  |  |  | 86,857 |
Current ABL Term Loan |  |  |  |  |  |  |  |  |  | (12,500 | ) |  |  | (12,500 | )
Current portion of finance lease obligations |  |  |  |  |  |  |  |  |  | (2,009 | ) |  |  | (3,545 | )
Unamortized debt issuance costs |  |  |  |  |  |  |  |  |  | (307 | ) |  |  | (476 | )
Total long-term debt |  |  |  |  |  |  |  |  | $ | 82,505 |  |  | $ | 70,336 |
(1) | Includes the effects of interest rate swaps.
(2) | Scheduled maturity dates for finance lease obligations range from May 2022 to November 2027.
(3) | Refer to the discussion below under the subheading “Construction Financing” for further information.
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 (together with all previous and subsequent amendments, 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. ABL Facility borrowings bear interest at LIBOR plus an applicable margin of 1.25% to 1.75%, or the Base Rate (as defined in the Credit Agreement) plus an applicable margin of 0.25% to 0.75%, with interest currently being paid on a monthly basis. UNIFI currently maintains three interest rate swaps as cash flow hedges intended to fix LIBOR at approximately 1.9% on $75,000 of variable-rate debt. Such swaps are scheduled to terminate in May 2022. During the quarter ended December 26, 2021, UNIFI’s outstanding variable-rate debt fell below the combined $75,000 notional amount. Accordingly, the $20,000 notional interest rate swap was de-designated from hedge accounting treatment. The impact of de-designation was not material. Construction Financing In May 2021, UNIFI entered into an agreement with a third party lender that provides for construction-period financing for certain eAFK Evo texturing machinery included in our capital allocation plans. UNIFI records 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 SOFR plus 1.25%, and contains terms customary for a financing of this type. Each borrowing under the agreement provides for 60 monthly payments, which will commence in the form of a finance lease obligation upon the completion of the construction period with an interest rate of approximately 3.4%. In connection with this construction financing arrangement, we have borrowed a total of $3,222 and transitioned a total of $1,764 of completed asset costs to finance lease obligations as of March 27, 2022. Scheduled Debt Maturities The following table presents the scheduled maturities of UNIFI’s outstanding debt obligations for the remainder of fiscal 2022, the following four fiscal years and thereafter:
|  | Fiscal 2022 |  |  | Fiscal 2023 |  |  | Fiscal 2024 |  |  | Fiscal 2025 |  |  | Fiscal 2026 |  |  | Thereafter |
ABL Revolver |  | $ | — |  |  | $ | — |  |  | $ | 18,500 |  |  | $ | — |  |  | $ | — |  |  | $ | — |
ABL Term Loan |  |  | 5,000 |  |  |  | 10,000 |  |  |  | 55,000 |  |  |  | — |  |  |  | — |  |  |  | — |
Finance lease obligations |  |  | 820 |  |  |  | 1,592 |  |  |  | 1,648 |  |  |  | 1,553 |  |  |  | 1,102 |  |  |  | 648 |
Total (1) |  | $ | 5,820 |  |  | $ | 11,592 |  |  | $ | 75,148 |  |  | $ | 1,553 |  |  | $ | 1,102 |  |  | $ | 648 |
| (1) | Total reported excludes $1,458 of construction financing, described above.

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- Definition The entire disclosure for long-term debt. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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