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Debt Instruments

9 Months Ended

Dec. 28, 2013

4. The Company completed the closing of a new five year revolving credit facility (“Revolver”) on July 20, 2011. Available borrowings under the Revolver total $300,000,000 from April through July and $400,000,000 from August through March. The Revolver balance as of December 28, 2013 was $226,000,000 and is included in Long-Term Debt in the accompanying Condensed Consolidated Balance Sheet due to its five year term. The Company utilizes its Revolver for general corporate purposes, including seasonal working capital needs, to pay debt principal and interest obligations, and to fund capital expenditures and acquisitions. Seasonal working capital needs are affected by the growing cycles of the vegetables and fruits the Company processes. The majority of vegetable and fruit inventories are produced during the months of June through November and are then sold over the following year. Payment terms for vegetable and fruit produce are generally three months but can vary from a few days to seven months. Accordingly, the Company's need to draw on the Revolver may fluctuate significantly throughout the year. The Revolver contains an accordion feature that allows the Company to request an increase in the aggregate commitments thereunder in an amount up to $150,000,000. In contemplation of the Allens, Inc. Asset Purchase Agreement, the Company received commitment letters from the lenders to increase the available borrowings under the Revolver. If the Company is the successful bidder in the Allens' bankruptcy case, the accordion feature will be exercised on or prior to closing of that transaction.

The increase in average amount of Revolver borrowings during the first nine months of fiscal 2014 compared to the first nine months of fiscal 2013 was attributable to the payoff of the note payable to an insurance company of $36,742,000, the Sunnyside acquisition in the fourth quarter of fiscal 2013, the deposit of $7,500,000 related to the potential acquisition of Allens, Inc. partially offset by an increase in net cash provided by operations.

General terms of the Revolver include payment of interest at LIBOR plus a defined spread.

The following table documents the quantitative data for Revolver borrowings during the third quarter and year-to-date periods of fiscal 2014 and fiscal 2013:

		Third Quarter						Year-to-Date
	2014			2013			2014			2013
		(In thousands)						(In thousands)
Reported end of period:
Outstanding borrowings	$	226,000		$	185,860		$	226,000		$	185,860
Weighted average interest rate		1.42	%		1.48	%		1.42	%		1.48	%
Reported during the period:
Maximum amount of borrowings	$	318,601		$	258,000		$	318,601		$	258,000
Average outstanding borrowings		259,683			188,302			214,884			150,773
Weighted average interest rate		1.53	%		1.47	%		1.64	%		1.51	%

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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