Debt

9 Months Ended

Nov. 28, 2020

Debt Disclosure [Abstract]

Debt

Debt

As of November 28, 2020, we had a committed revolving credit facility with maximum borrowings of up to $235 million with a maturity of June 2024 and a $150 million term loan. The term loan was amended during the third quarter of fiscal 2021 to extend the maturity date to June 2024. Total debt outstanding was $168.5 million, compared to $217.9 million as of February 29, 2020. There were no outstanding borrowings under the revolving credit facility as of November 28, 2020, while there were $47.5 million in outstanding borrowings under the revolving credit facility as of February 29, 2020.

Our revolving credit facility and term loan contain two financial covenants that require us to stay below a maximum debt-to-EBITDA ratio and maintain a minimum ratio of interest expense-to-EBITDA. Both ratios are computed quarterly, with EBITDA calculated on a rolling four-quarter basis. At November 28, 2020, we were in compliance with both financial covenants. Additionally, at November 28, 2020, we had a total of $18.7 million of ongoing letters of credit related to industrial revenue bonds, construction contracts and insurance collateral that expire in fiscal year 2022 and reduce borrowing capacity under the revolving credit facility.

At November 28, 2020, debt included $15.0 million of industrial revenue bonds that mature in fiscal years 2022 through 2043. In June 2020, a $5.4 million industrial revenue bond matured and was repaid. The fair value of the industrial revenue bonds approximated carrying value at November 28, 2020, due to the variable interest rates on these instruments. All debt would be classified as Level 2 within the fair value hierarchy described in Note 4.

We also maintain two Canadian committed, revolving credit facilities totaling $25.0 million (USD). As of November 28, 2020, $3.5 million was outstanding under the facilities, while at February 29, 2020, there were no borrowings under the facilities.

Interest payments were $3.7 million and $7.3 million for the nine months ended November 28, 2020 and November 30, 2019, respectively.