DEBT AND FINANCING OBLIGATIONS

6 Months Ended

Nov. 24, 2019

11. DEBT AND FINANCING OBLIGATIONS

At November 24, 2019 and May 26, 2019, our debt, including financing obligations was as follows (dollars in millions):


	November 24,		May 26,
	2019		2019
Short-term borrowings:
Revolving credit facility	$	—	$	7.2
Other credit facilities		9.9		1.2
		9.9		8.4
Long-term debt:
Term loan facility, due 2021		285.9		599.1
Term loan facility, due 2024		296.3		—
4.625% senior notes, due 2024		833.0		833.0
4.875% senior notes, due 2026		833.0		833.0
		2,248.2		2,265.1
Financing obligations:
4.35% lease financing obligation due May 2030 (a)		—		65.3
Lease financing obligations due on various dates through 2040 (b)		14.5		13.6
		14.5		78.9

Total debt and financing obligations		2,272.6		2,352.4
Debt issuance costs		(22.9)		(25.8)
Short-term borrowings		(9.9)		(8.4)
Current portion of long-term debt and financing obligations		(36.1)		(38.0)
Long-term debt and financing obligations, excluding current portion	$	2,203.7	$	2,280.2

(a)	On May 27, 2019, we adopted ASC 842 and we eliminated this financing obligation, related to a sale leaseback, as part of the cumulative effect transition adjustment. See Note 1, Nature of Operations and Summary of Significant Accounting Policies, for more information.

(b)	The interest rates on our lease financing obligations range from 2.77% to 3.68% as of November 24, 2019, and 2.72% to 4.33% as of May 26, 2019.

Credit Facilities

At November 24, 2019, we had no borrowings outstanding under our Revolving Credit Facility (the “Facility”) and $496.6 million of availability under the Facility, which is net of outstanding letters of credit of $3.4 million. For the twenty-six weeks ended November 24, 2019, borrowings under the Facility ranged from zero to $97.9 million and the weighted average interest rate for our outstanding borrowings under the Facility was 3.83%.

New Term Loan Facility

On June 28, 2019, we amended our credit agreement to refinance $300.0 million of the $599.1 million term loan facility outstanding at May 26, 2019 and entered into a new credit agreement providing for a $300.0 million term loan facility (“New Term Loan Agreement”), for a lower overall interest rate, including anticipated patronage dividends. The New Term Loan Agreement bears interest, before anticipated patronage dividends, at LIBOR or the Base Rate (each as defined in the New Term Loan Agreement) plus an applicable margin ranging from 1.625% to 2.375% for LIBOR-based loans and from 0.625% to 1.375% for Base Rate-based loans, depending upon our total net leverage ratio. The borrowings under the New Term Loan Agreement mature June 28, 2024, and the covenants, events of default, and guarantees are consistent with the Facility. The New Term Loan Agreement also provides for the ability, under certain circumstances, to add incremental facilities in an aggregate amount of up to $100.0 million. In connection with the refinancing, we capitalized $1.0 million of debt issuance costs. During the twenty-six weeks ended November 24, 2019, we recorded $1.7

million of expenses, in “Interest expense, net” for the write-off of debt issuance costs related to the portion of the Term loan facility due in 2021, that was paid in full.

For the twenty-six weeks ended November 24, 2019 and November 25, 2018, we paid $52.6 million and $53.3 million of interest on debt, respectively.