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Long-Term Debt (Tables) | 3 Months Ended
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Sep. 28, 2024
Debt Disclosure [Abstract] |
Schedule of Debt |
| Maturity Date | Interest Rate | September 28, 2024 |  | June 29, 2024
|  |  | (in thousands)
Asset-based senior secured revolving credit facility (1) | December 3, 2025 | 9.0% | $ | 101,477 |  |  | $ | 107,149 |
Foreign line of credit (2) | December 11, 2026 | 13.8% | 5,059 |  |  | 5,403 |
Domestic term loans - Balboa (3) | September 19, 2030 | 6% to 8% | 4,332 |  |  | 4,535 |
Foreign term loan - Banorte (4) | April 24, 2026 | 5.5% | 1,900 |  |  | 2,200 |
Domestic term loan - Bank of America (5) | August 14, 2025 | 4.9% | 1,010 |  |  | 1,277 |
Total debt |  |  | 113,778 |  |  | 120,564 |
Less: current portion of debt |  |  | (3,057) |  |  | (3,123) |
Less: unamortized financing costs |  |  | (1,046) |  |  | (1,059) |
Long-term debt, net |  |  | $ | 109,675 |  |  | $ | 116,382 |
(1) On August 14, 2020, the Company entered into a loan agreement with Bank of America (“Loan Agreement”). The Loan Agreement replaced the Company’s prior amended and restated credit agreement, as amended, with Wells Fargo Bank. The Loan Agreement provides for an asset-based senior secured revolving credit facility with an original availability of up to $93 million. On September 3, 2021, the Company entered into an amendment to the Loan Agreement, which increased the availability under the credit facility to $120 million, subject to the Company’s borrowing base, and set the maturity date to September 3, 2026. On August 26, 2022, the Company entered into a third amendment to the Loan Agreement, which removed the cash flow leverage ratio covenant and increased the interest rate by 25 basis points. On May 7, 2024, the Company entered into a fourth amendment to the Loan Agreement, effective as of March 29, 2024, which amendment modified debt covenant provisions to reduce the minimum requirement for the fixed charge coverage ratio from 1.25:1.00 to 1.00:1.00 as of March 30, 2024 and allow for the add back of severance expenses incurred during the quarter ended March 30, 2024. The minimum requirement for the fixed charge coverage ratio will increase as follows: 1.05:1.00 on July 27, 2024, 1.15:1.00 on October 26, 2024, 1.20:1.00 on January 25, 2025, and 1.25:1.00 on and after March 29, 2025. In addition, the amendment increased the interest rate by 100 basis points beginning on March 29, 2024 and moved forward the maturity date by one year to September 3, 2025. On September 27, 2024, the Company entered into a fifth amendment to the Loan Agreement, which extended the maturity date by three months to December 3, 2025. On October 9, 2024, the Company entered into a sixth amendment to the Loan Agreement, The Amendment waived existing events of default relating to non-compliance with (a) prescribed fixed charge coverage ratios for the periods ending June 29, 2024 and July 27, 2024 and (b) delivering audited financial statements within 90 days of the Company's fiscal year-end. The Amendment increased the interest rate by 50 basis points beginning on October 9, 2024 so that the applicable margin on base rate loans is 3.50% and term SOFR loans is 4.50%. In addition, the Amendment increased the availability block, which reduces the calculated borrowing base under the Loan Agreement, from $8 million to $10 million, with further increases to $11 million and $12 million to be effective on December 31, 2024 and March 31, 2025, respectively. As of September 28, 2024, the Company had an outstanding balance under the asset-based revolving credit facility of $101.5 million, $0.4 million in outstanding letters of credit and $18.5 million available for future borrowings. As of June 29, 2024, the Company had an outstanding balance under the asset-based credit facility of $107.1 million, $0.3 million in outstanding letters of credit and $12.9 million available for future borrowings. Generally, the interest rate applicable to loans under the Bank of America loan agreement will be, at the Company’s option: (i) the base rate which is the highest of (a) the Prime Rate for such day, (b) the Federal Funds Rate for such day plus 0.50%, and (c) Term SOFR for a one month interest period as of such day, plus 1.00% (provided that in no event shall the base rate be less than zero), plus the applicable interest margin for base rate loans; or (ii) SOFR rate for an applicable interest period, plus the applicable interest margin for SOFR rate loans. As modified by the sixth amendment to the Loan Agreement, the applicable interest margin on: (x) base rate loans is 3.50% and (y) SOFR rate loans is 4.50% , resetting on a quarterly basis. If there is an event of default that is not waived under the Loan Agreement, all loans and other obligations will bear interest at a rate of an additional 2.00% on the otherwise applicable interest rates. In addition to interest charges, the Company is required to pay a fee of 0.25% per annum on the unused portion of the Credit Facility, monthly in arrears. As of September 28, 2024, the interest rate on the asset-based revolving credit facility with Bank of America was 8.97%. (2) On December 11, 2023, the Company entered into a loan agreement in Mexican peso with Banorte Financial Group. The agreement provides for a three-year secured line of credit up to MXN100 million, subject to the Company’s borrowing base, maturing on December 11, 2026. The credit facility bears interest at Iterbancario de Equilibrio Interest Rate plus 2.75%, and as of September 28, 2024, was 13.8%. As of September 28, 2024, the Company had an outstanding balance under the revolving credit facility of MXN99 million ($5.06 million USD) and MXN1 million ($0.03 million USD) available for future borrowings. (3) On September 19, 2023, the Company entered into a $1.1 million equipment financing agreement with Ameris Bank dba Balboa Capital ("Balboa Capital"). Combining with other equipment financing agreements entered in the third quarter of fiscal year 2023, a total of $5.5 million relates to the Company’s existing manufacturing equipment that bears an interest rate range of 6% - 8% and matures in the first quarter of fiscal 2030. Under these loan agreements, equal monthly payments of $94,000 commenced in the fourth quarter of fiscal year 2024 and will continue through the maturity of the equipment financing facility in the first quarter of fiscal 2030. The Company had an outstanding balance $4.3 million as of September 28, 2024. (4) On November 24, 2020, the Company entered into a $6.0 million equipment financing facility related to the Company’s existing manufacturing equipment that bears interest at 5.52% and matures on April 24, 2026. Under this loan agreement, equal monthly payments of $100,000 commenced on May 24, 2021 and will continue through the maturity of the equipment financing facility on April 24, 2026. As of September 28, 2024, the Company had an outstanding balance of $1.9 million. As of June 29, 2024, the Company had an outstanding balance of $2.2 million. (5) On August 14, 2020, the Company entered into a $5.0 million equipment financing facility with Bank of America relating to the Company’s existing U.S. manufacturing equipment that bears interest at 4.85% and matures on August 14, 2025. Under this loan agreement, equal monthly payments of approximately $94,000 commenced on September 14, 2020 and will continue through the maturity of the equipment financing facility on August 14, 2025. As of September 28, 2024, the Company had an outstanding balance of $1.0 million. As of June 29, 2024, the Company had an outstanding balance of $1.3 million.
Schedule of Maturities of Long-term Debt | Debt maturities as of September 28, 2024 for the next five years are as follows (in thousands):
Fiscal Years Ending | Amount
2025 (1) | $ | 2,353 |
2026 | 103,557 |
2027 | 6,020 |
2028 | 1,032 |
2029 - Thereafter | 816 |
Total debt | $ | 113,778 |
Unamortized debt issuance costs | $ | (1,046) |
Long-term debt, net of debt issuance costs | $ | 112,732 |
(1) Represents scheduled payments for the remaining nine-month period ending June 28, 2025.

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