Debt Instruments

6 Months Ended

Oct. 01, 2016

Debt Instruments [Abstract]

Debt Disclosure Text Block

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 $400,000,000from April through July and $500,000,000 from August through March.   The Revolver balance as of October1, 2016was $342,935,000 and is included in Long-Term Debt in the accompanying Condensed Consolidated Balance Sheet since the Revolver matures on July 5, 2021. 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 six months of fiscal 2017 compared to the first six months of fiscal 2016 was attributable to the acquisitions of $38,795,000made during the last year ended March 2016, the pay off of $22,596,000 of Industrial Revenue Bonds, Accounts Receivables which are $19,431,000 higher than the same period last year and total Inventories which are $10,293,000 higher than the same period last year, partially offset by operating results in the last year ended October 1, 2016 of $51,050,000.

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 second quarter and year-to-date periods of fiscal 2017 and fiscal 2016:

		Second Quarter						Year-to-Date
	2017			2016			2017			2016
		(In thousands)						(In thousands)
Reported end of period:
Outstanding borrowings	$	342,935		$	304,468		$	342,935		$	304,468
Weighted average interest rate		1.88	%		1.99	%		1.88	%		1.99	%
Reported during the period:
Maximum amount of borrowings	$	361,800		$	304,468		$	361,800		$	304,468
Average outstanding borrowings	$	314,102		$	242,255		$	284,287		$	225,112
Weighted average interest rate		1.78	%		1.96	%		1.93	%		1.95	%