Debt and Floor Plan Payable

9 Months Ended

Dec. 30, 2023

Debt Disclosure [Abstract]

Debt and Floor Plan Payable

9. Debt and Floor Plan Payable

Long-term debt consisted of the following:

(Dollars in thousands)	December 30, 2023		April 1, 2023
Obligations under industrial revenue bonds due 2029	$	12,430	$	12,430
Notes payable to Romeo Juliet, LLC, due 2026		5,314		—
Notes payable to Romeo Juliet, LLC, due 2039		2,036		—
Note payable to United Bank, due 2026		4,883		—
Revolving credit facility maturing in 2026		—		—
Total long-term debt	$	24,663	$	12,430

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. The Amended Credit Agreement allows the Company to draw down, repay and re-draw loans on the available facility during the term, subject to certain terms and conditions, matures in July 2026, and has no scheduled amortization.

On May 18, 2023, the Company further amended the Amended Credit Agreement, which removed references to the London Interbank Offer Rate ("LIBOR") and clarified language pertaining to the Secured Overnight Financing Rate ("SOFR") in regards to the interest rate on borrowings. The interest rate on borrowings under the Amended Credit Agreement is based on SOFR plus a SOFR adjustment, plus an interest rate spread. The interest rate spread adjusts based on the consolidated total net leverage of the Company from a high of 1.875% when the consolidated total net leverage ratio is equal to or greater than 2.25:1.00, to a low of 1.125% when the consolidated total net leverage ratio is below 0.50:1.00. Alternatively for same day borrowings, the interest rate is based on an Alternative Base Rate ("ABR") plus an interest rate spread that ranges from a high of 0.875% to a low of 0.125% based on the consolidated total net leverage ratio. 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 December 30, 2023 the interest rate under the Amended Credit Agreement was 6.58% and letters of credit issued under the Amended Credit Agreement totaled $34.0 million. Available borrowing capacity under the Amended Credit Agreement as of December 30, 2023 was $166.0 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 December 30, 2023, including related costs and fees, was 5.48%. The industrial revenue bonds require lump-sum payments of principal upon maturity in 2029 and are secured by the assets of certain manufacturing facilities.

As part of the acquisition of Regional Homes, the Company assumed notes payable to Romeo Juliet, LLC, a subsidiary of Wells Fargo Community Investment Holdings, Inc. ("WFC"). The weighted-average interest rate on those notes at December 30, 2023 was 5.4%. The notes are secured by certain assets of Regional Homes. In addition, the Company assumed a note payable to United Bank with an interest rate of 3.85% that is secured by a Note Receivable from HHB Investment Fund, LLC, a subsidiary of Wells Fargo Community Investment Holdings, Inc. (“WFC”).

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 December 30, 2023.

Floor Plan Payable

The Company’s retail operations utilize floor plan financing to fund the purchase of manufactured homes for display or resale. At December 30, 2023, the Company had outstanding borrowings on floor plan financing agreements of $80.4 million. Total credit line capacity provided under the agreements was $248.0 million as of December 30, 2023. Borrowings are secured by the homes and are required to be repaid when the Company sells the related home to a customer. There were no floor plan borrowings at April 1, 2023.