Debt and Floor Plan Payable

9 Months Ended

Jan. 01, 2022

Debt Disclosure [Abstract]

Debt and Floor Plan Payable

8. Debt and Floor Plan Payable

Long-term debt consisted of the following:

(Dollars in thousands)	January 1, 2022		April 3, 2021
Revolving credit facility maturing in 2026	$	—	$	26,900
Obligations under industrial revenue bonds due 2029		12,430		12,430
Total debt		12,430		39,330
Less: current portion		—		—
Total long-term debt	$	12,430	$	39,330

On July 7, 2021, the Company entered into an Amended and Restated Credit Agreement with a syndicate of banks that provides for a revolving credit facility of up to $200.0 million, including a $45.0 million letter of credit sub-facility (“Amended Credit Agreement”). The Amended Credit Agreement replaced the Company’s previously existing $100.0 million revolving credit facility. Outstanding borrowings of $26.9 million on the Company’s previous revolving credit facility were repaid in July 2021. The Amended Credit Agreement allows the Company to draw down, repay and re-draw loans on the available funds during the term, subject to certain terms and conditions, matures in July 2026 and has no scheduled amortization. The Company capitalized $1.1 million of deferred financing fees associated with the Amended Credit Agreement, which is included in other noncurrent assets on the accompanying consolidated balance sheets. The Company wrote off $0.3 million of deferred financing fees associated with the previously existing credit facility, which is included in interest expense, net for the nine months ended January 1, 2022.

The interest rate on borrowings under the Amended Credit Agreement adjusts based on the consolidated total net leverage of the Company from a high of LIBOR plus 1.875% and ABR plus 0.875%, at the election of the Company, when the consolidated total net leverage ratio is equal to or greater than 2.25:1.00, to a low of LIBOR plus 1.125% and ABR plus 0.125% when the consolidated total net leverage is below 0.50:1.00. In addition, the Company is obligated to pay an unused line fee ranging between 0.15% and 0.3% (depending on the consolidated total net leverage ratio) in respect of unused commitments under the Amended Credit Agreement. At January 1, 2022 the interest rate under the Amended Credit Agreement was 1.23%. At January 1, 2022, letters of credit issued under the Amended Credit Agreement totaled $30.4 million and total available borrowings were $169.6 million.

Obligations under industrial revenue bonds are supported by letters of credit and bear interest based on a municipal bond index rate. The weighted-average interest rate at January 1, 2022, including related costs and fees, was 1.78%. The industrial revenue bonds require lump-sum payments of principal upon maturity in 2029.

The Amended Credit Agreement contains covenants that restrict the amount of additional debt, liens and certain payments, including equity buybacks, investments, dispositions, mergers and consolidations, among other restrictions as defined. The Company was in compliance with all covenants of the Amended Credit Agreement as of January 1, 2022.

Floor Plan Payable

The Company’s retail operations utilize floor plan financing to fund the purchase of manufactured homes for display or resale. At January 1, 2022 and April 3, 2021, the Company had outstanding borrowings on floor plan financing agreements of $34.3 million and $25.7 million, respectively. Total credit line capacity provided under the agreements was $57.0 million as of January 1, 2022. Borrowings are secured by the financed homes and are required to be repaid when the Company sells a financed home to a customer.