Note 5 - Revolving Credit-Facility

12 Months Ended

Mar. 31, 2020

Notes to Financial Statements

Debt Disclosure [Text Block]

5

. Revolving Credit-Facility

The Company completed the closing of a

five

-year revolving credit facility (“Revolver”) on

July 5, 2016.

Maximum borrowings under the Revolver total

$300.0

million from

April

through

July

and

$400.0

million from

August

through

March

which represents a

$100

million reduction in the maximum commitment for both periods as elected by the Company in

May 2020. 

The Revolver balance as of

March 31, 2020

was

$106.9

million and is included in Long-Term Debt in the accompanying Consolidated Balance Sheet due to the Revolver’s

July 5, 2021

maturity. In order to maintain availability of funds under the facility, the Company pays a commitment fee on the unused portion of the Revolver. The Revolver is secured by the Company’s accounts receivable and inventories and contains a financial covenant and borrowing base requirements. 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 the Company packages. The majority of vegetable inventories are produced during the months of

June

through

November

and are then sold over the following year. Payment terms for vegetable 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.