Debt

12 Months Ended

Feb. 25, 2023

Debt Disclosure [Abstract]

Debt

Debt

During the second quarter ended August 27, 2022, we amended and extended our committed revolving credit facility to include maximum borrowings of up to $385 million with a maturity of August 2027. As part of the amendment, we repaid the $150 million term loan with borrowings under the revolving credit facility. As of February 25, 2023, outstanding borrowings under our revolving credit facility were $156 million, while there were no outstanding borrowings under the revolving credit facility and $150 million of borrowings outstanding under the term loan as of February 26, 2022.

Our revolving credit facility contains two maintenance 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 February 25, 2023, we were in compliance with both financial covenants.

Debt at February 25, 2023 also included $12.0 million of industrial revenue bonds that mature in fiscal years 2036 through 2043. The fair value of the industrial revenue bonds approximated carrying value at February 25, 2023, due to the variable interest rates on these instruments. The bonds 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). At February 25, 2023, outstanding borrowings under our Canadian committed, revolving credit facilities were $1.8 million, while there were no outstanding borrowings under the facilities in place as of as of February 26, 2022.

Debt maturities and other selected information follows:

(In thousands)	2024		2025		2026		2027		2028		Thereafter		Total
Maturities	$	—	$	—	$	—	$	—	$	157,837	$	12,000	$	169,837

(In thousands, except percentages)	2023			2022
Average daily borrowings during the year	$	225,773		$	167,542
Maximum borrowings outstanding during the year	285,329			168,669
Weighted average interest rate during the year	3.54		%	1.45		%

(In thousands)	February 25, 2023		February 26, 2022		February 27, 2021
Interest on debt	$	8,140	$	3,695	$	4,981
Other interest expense	294		866		604
Interest expense	$	8,434	$	4,561	$	5,585

Interest payments were $8.2 million in fiscal February 25, 2023, $3.5 million in fiscal February 26, 2022 and $4.6 million in fiscal February 27, 2021.