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Long-Term Debt | 3 Months Ended
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Oct. 02, 2022
Debt Disclosure [Abstract] |
Long-Term Debt | 5. Long-Term Debt Debt Obligations The following table and narrative presents the detail of UNIFI’s debt obligations.
|  |  |  | Weighted Average |  |  |
|  | Scheduled |  | Interest Rate as of |  | Principal Amounts as of |
|  | Maturity Date |  | October 2, 2022 |  | October 2, 2022 |  |  | July 3, 2022 |
ABL Revolver |  | December 2023 |  |  | 4.5 | % |  |  | $ | 54,500 |  |  | $ | 41,300 |
ABL Term Loan |  | December 2023 |  |  | 4.1 | % |  |  |  | 62,500 |  |  |  | 65,000 |
Finance lease obligations |  | (1) |  |  | 3.6 | % |  |  |  | 7,554 |  |  |  | 7,261 |
Construction financing |  | (2) |  |  | 1.8 | % |  |  |  | 2,450 |  |  |  | 729 |
Total debt |  |  |  |  |  |  |  |  |  | 127,004 |  |  |  | 114,290 |
Current ABL Term Loan |  |  |  |  |  |  |  |  |  | (10,000 | ) |  |  | (10,000 | )
Current portion of finance lease obligations |  |  |  |  |  |  |  |  |  | (1,875 | ) |  |  | (1,726 | )
Unamortized debt issuance costs |  |  |  |  |  |  |  |  |  | (210 | ) |  |  | (255 | )
Total long-term debt |  |  |  |  |  |  |  |  | $ | 114,919 |  |  | $ | 102,309 |
(1) | Scheduled maturity dates for finance lease obligations range from March 2025 to November 2027.
(2) | Refer to the discussion below under the subheading “Construction Financing” for further information.
ABL Facility Since the filing of the 2022 Form 10-K, Unifi, Inc. entered into the Sixth Amendment to Amended and Restated Credit Agreement (the “Sixth Amendment”) on September 2, 2022. The Sixth Amendment modified the Trigger Level (as defined in the Prior Credit Agreement and which relates to, among other things, the requirement to maintain a Fixed Charge Coverage Ratio (as defined in the Prior Credit Agreement)) such that it occurs when Excess Availability (as defined in the Prior Credit Agreement) falls below (a) for the period beginning on September 2, 2022 through and including the date that is 60 days after such date, $16,500 and (b) at all other times, the greatest of (i) $10.0 million, (ii) 20% of the Maximum Revolver Amount (as defined in the Prior Credit Agreement), and (iii) 12.5% of the sum of the Maximum Revolver Amount plus the outstanding principal amount of the Term Loan (as defined in the Prior Credit Agreement). On October 28, 2022, Unifi, Inc. and certain of its subsidiaries entered into a Second Amended and Restated Credit Agreement (the “2022 Credit Agreement”) with a syndicate of lenders. The 2022 Credit Agreement provides for a $230,000 senior secured credit facility (the “2022 ABL Facility”), including a $115,000 revolving credit facility and a term loan that can be reset up to a maximum amount of $115,000, once per fiscal year, if certain conditions are met. The 2022 ABL Facility has a maturity date of October 28, 2027. Prior to entering the 2022 Credit Agreement, Unifi, Inc. and certain of its subsidiaries maintained a similar credit agreement that established a $200,000 senior secured credit facility (the “Prior ABL Facility”), including a $100,000 revolving credit facility (the “Prior ABL Revolver”) and a term loan that could be reset up to a maximum amount of $100,000, once per fiscal year, if certain conditions were met (the “Prior ABL Term Loan”). The Prior ABL Facility had a maturity date of December 18, 2023. Borrowings under the 2022 ABL Facility bear interest at SOFR plus 0.10% plus an applicable margin of 1.25% to 1.75%, or the Base Rate (as defined in the 2022 Credit Agreement) plus an applicable margin of 0.25% to 0.75%, with interest paid on a monthly basis. Prior ABL Facility borrowings bore interest at LIBOR plus an applicable margin of 1.25% to 1.75%, or the Base Rate (as defined in the Prior Credit Agreement) plus an applicable margin of 0.25% to 0.75%, with interest paid on a monthly basis. Construction Financing In May 2021, UNIFI entered into an agreement with a third party lender that provides for construction-period financing for certain 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 upon the completion of the construction period with an interest rate of approximately 4.4%. In connection with this construction financing arrangement, UNIFI has borrowed a total of $5,672 and transitioned $3,222 of completed asset costs to finance lease obligations as of October 2, 2022. Scheduled Debt Maturities The following table presents the scheduled maturities of UNIFI’s outstanding debt obligations:
|  | Fiscal 2023 |  |  | Fiscal 2024 |  |  | Fiscal 2025 |  |  | Fiscal 2026 |  |  | Fiscal 2027 |  |  | Thereafter |
ABL Revolver |  | $ | — |  |  | $ | 54,500 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
ABL Term Loan |  |  | 7,500 |  |  |  | 55,000 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Finance lease obligations |  |  | 1,400 |  |  |  | 1,926 |  |  |  | 1,843 |  |  |  | 1,406 |  |  |  | 890 |  |  |  | 89 |
Total (1) |  | $ | 8,900 |  |  | $ | 111,426 |  |  | $ | 1,843 |  |  | $ | 1,406 |  |  | $ | 890 |  |  | $ | 89 |
| (1) | Total reported excludes $2,450 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 https://asc.fasb.org/topic&trid=2208564 + Details
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