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Credit Facility
12 Months Ended
Mar. 31, 2014
Debt Disclosure [Abstract]  
Credit Facility
Credit Facility
In December 2011, the Company entered into a second amended and restated loan agreement (as amended from time to time, the “Credit Agreement”) with Bank of America, N. A. that, among other things, provided for an increase in its revolving credit facility to $20.0 million and an extension of the term through August 2014. In March 2013, the Company amended the Credit Agreement to provide for, among other things, an increase in the credit facility to $40.0 million and an extension of the term through August 2016. On November 5, 2013, the Company amended its Credit Agreement to provide for, among other things, consent for the Company to create a limited liability company and guarantee performance of the limited liability company in the event and to the extent the Company assigns to the limited liability company any of its rights or obligations under the Purchase Agreement dated November 5, 2013 among the Company, Safeway Inc. and Safeway Australia Holdings, LLC (see Note 18). Additionally, the amendment provides for the issuance of letters of credit and revises certain covenants and representations and warranties of the Company under the Credit Agreement. In connection with this amendment, Annie’s Baking, LLC, became a party to the Credit Agreement pursuant to a Joinder Agreement dated November 22, 2013. The credit facility is collateralized by substantially all of the Company’s assets.
The Company may select from three interest rate options for borrowings under the credit facility: (i) LIBOR plus 1.25%, (ii) IBOR plus 1.25% or (iii) Prime Rate (as each such term is defined in the Credit Agreement). The interest rate was 1.5% as of March 31, 2013. The Company is required to pay a commitment fee on the unused credit facility commitments, if the outstanding balance is less than half the commitment, at an annual rate ranging from 0.25% to 0.40% depending on the utilization rate. As of March 31, 2014 and 2013, there was $40.0 million and $33.0 million, respectively, of borrowings available under the credit facility. Interest is payable monthly.
The Credit Agreement contains restrictions on, among other things, the Company’s ability to incur additional indebtedness, pay dividends or make other distributions and make investments and loans. The Credit Agreement also limits the Company’s ability to make capital expenditures in excess of $15.0 million. The Credit Agreement requires that the Company maintain a Funded Debt to Adjusted EBITDA ratio of not more than 2.75 to 1.0 and a minimum Net Worth equal to at least $50.0 million, plus 30% of earnings after taxes earned each quarter (if positive), beginning with the June 2013 quarterly earnings (as each such term is defined in the Credit Agreement). The Credit Agreement requires the Company to submit interim and annual financial statements by specified dates after each reporting period. The Company was in compliance with the covenants as of March 31, 2014 and 2013.