Note 4 - Revolving Credit Facility

3 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Debt Disclosure [Text Block]

4. Revolving Credit Facility

The Company entered into a

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

June 30, 2018

was

$207,610,000

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

three

months of fiscal

2019

compared to the

first

three

months of fiscal

2018

was attributable to Accounts Receivable which are

$10,004,000

higher than the same period last year and net loss in the last

twelve

months ended

June 30, 2018

of

$16,397,000.

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

quarter of fiscal

2019

and fiscal

2018:

	First Quarter
	2019			2018
	(In thousands)
Reported end of period:
Outstanding borrowings	$	207,610		$	226,010
Weighted average interest rate		3.62	%		2.49	%
Reported during the period:
Maximum amount of borrowings	$	294,062		$	233,895
Average outstanding borrowings	$	262,794		$	214,472
Weighted average interest rate		3.50	%		2.30	%