Debt Instruments

3 Months Ended

Jun. 27, 2015

4. Maximum 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 June 27, 2015 was $197,350,000 and is included in Long-Term Debt in the accompanying Condensed Consolidated Balance Sheet since the Revolver matures on July 20, 2016. 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 increase in average amount of Revolver borrowings during the first quarter of fiscal 2016 compared to the first quarter of fiscal 2015 was attributable to the stock buyback of $24,929,000 made during the last year ended June 2015 and total Inventories which are $15,266,000 higher than the same period last year, partially offset by increased operating results in the first quarter of fiscal 2016 as compared to the first quarter of fiscal 2015.

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 first quarters of fiscal 2016 and fiscal 2015:

		First Quarter
	2016			2015
		(In thousands)
Reported end of period:
Outstanding borrowings	$	197,350		$	180,050
Weighted average interest rate		1.95	%		1.47	%
Reported during the period:
Maximum amount of borrowings	$	233,000		$	190,000
Average outstanding borrowings	$	207,475		$	171,417
Weighted average interest rate		1.94	%		1.59	%