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Subsequent Event
9 Months Ended
Feb. 25, 2023
Subsequent Events [Abstract]  
Subsequent Events

11. SUBSEQUENT EVENT

On March 20, 2023, the Company established a senior, secured revolving credit facility agreement with a three-year term in an aggregate principal amount not to exceed $30 million, including a Swingline Loan sub-facility and a Letter of Credit sub-facility (collectively, the "Revolving Credit Facility") with PNC Bank. The Revolving Credit Facility is guaranteed by the Company's domestic subsidiaries. Proceeds of the borrowings under the Revolving Credit Facility will be used for working capital and general corporate purposes of the Company and its subsidiaries. As of the date of this report, no amounts were outstanding under the Revolving Credit Facility.

Borrowings under the Revolving Credit Facility will bear interest at a rate per annum selected by the Company selected from the following options: (a) Term Secured Overnight Financing Rate ("SOFR") plus the applicable adjustment; (b) Base Rate plus 0.25%; (c) Daily Simple Risk-Free Rate ("RFR") for Euros plus the RFR adjustment plus 1.25%. Letters of Credit issues have a letter of credit fee of 1.25% per annum. The unused line fee with respect to the Revolving Credit Facility is 0.10% per annum.

The Credit Agreement provides that the Company must maintain compliance with a maximum consolidated leverage ratio covenant and a minimum consolidated fixed charge coverage ratio. The Credit Agreement also contains customary affirmative, negative and financial covenants including limitations on certain other indebtedness, loans and investments, liens, mergers, asset sales, and transactions with affiliates, as well as customary events of default for this type of financing.