Note 6 - Revolving Credit Facility

9 Months Ended

Jan. 01, 2022

Notes to Financial Statements

Debt Disclosure [Text Block]

6. Revolving Credit Facility

On March 24, 2021, the Company entered into a Fourth Amended and Restated Loan and Security Agreement that provides for a senior revolving credit facility of up to $400.0 million that is seasonally adjusted (the “Revolver”). Maximum borrowings under the Revolver total $300.0 million from April through July and $400.0 million from August through March. The Revolver balance is included in Long-Term Debt in the accompanying Condensed Consolidated Balance Sheet due to the Revolver’s March 24, 2026 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 substantially all of the Company’s accounts receivable and inventories and contains borrowing base requirements as well as a financial covenant, if certain circumstances apply. 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.

General terms of the Revolver include payment of interest at LIBOR plus a defined spread. The following table illustrates certain quantitative data for Revolver borrowings during fiscal 2022 and fiscal 2021 (in thousands):

	As of:
	January 1,			December 26,
	2022			2020
Outstanding borrowings	$	33,711		$	-
Weighted average interest rate		1.35	%		0.00	%

	Three Months Ended						Nine Months Ended
	January 1,			December 26,			January 1,			December 26,
	2022			2020			2022			2020
Maximum amount of borrowings	$	54,264		$	81,052		$	54,264		$	107,967
Average outstanding borrowings	$	37,112		$	32,099		$	16,250		$	45,022
Weighted average interest rate		1.34	%		1.87	%		1.34	%		2.92	%