Debt Instruments

3 Months Ended

Jul. 02, 2016

4. Revolving Credit Facility The Company completed the closing of a new five-year revolving credit facility (“Revolver”) on July 5, 2016. Maximum borrowings under the Revolver total $400,000,000 from April through July and $500,000,000 from August through March. The Revolver balance as of July 2, 2016 was $264,000,000 and is included in Long-Term Debt in the accompanying Condensed Consolidated Balance Sheet. 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 2017 compared to the first quarter of fiscal 2016 was attributable to the acquisitions of Gray & Company and Diana Fruit Co., Inc. totaling $38,795,000, stock buyback of $4,187,000 made during the last year ended July 2, 2016 and total Inventories, excluding the inventories of the acquisitions, which are $64,896,000 higher than the same period last year, partially offset by operating results in the last year ended July 2, 2016 of $51,428,000.

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 2017 and fiscal 2016:

		First Quarter
	2017			2016
		(In thousands)
Reported end of period:
Outstanding borrowings	$	264,000		$	197,350
Weighted average interest rate		1.95	%		1.95	%
Reported during the period:
Maximum amount of borrowings	$	274,629		$	233,000
Average outstanding borrowings	$	255,114		$	207,475
Weighted average interest rate		1.95	%		1.94	%