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Long-Term Debt
3 Months Ended
Sep. 26, 2021
Debt Disclosure [Abstract]  
Long-Term Debt

11.  Long-Term Debt

Debt Obligations

The following table presents the total balances outstanding for UNIFI’s debt obligations, their scheduled maturity dates and the weighted average interest rates for borrowings as well as the applicable current portion of long-term debt:

 

 

 

 

 

Weighted Average

 

 

 

 

 

Scheduled

 

Interest Rate as of

 

Principal Amounts as of

 

 

 

Maturity Date

 

September 26, 2021

 

September 26, 2021

 

 

June 27, 2021

 

ABL Revolver

 

December 2023

 

 

0.0

%

 

 

$

 

 

$

 

ABL Term Loan

 

December 2023

 

 

3.2

%

(1)

 

 

75,000

 

 

 

77,500

 

Finance lease obligations

 

(2)

 

 

3.6

%

 

 

 

7,548

 

 

 

8,475

 

Construction financing

 

(3)

 

 

2.3

%

 

 

 

1,764

 

 

 

882

 

Total debt

 

 

 

 

 

 

 

 

 

84,312

 

 

 

86,857

 

Current ABL Term Loan

 

 

 

 

 

 

 

 

 

(12,500

)

 

 

(12,500

)

Current portion of finance lease obligations

 

 

 

 

 

 

 

 

 

(2,928

)

 

 

(3,545

)

Unamortized debt issuance costs

 

 

 

 

 

 

 

 

 

(419

)

 

 

(476

)

Total long-term debt

 

 

 

 

 

 

 

 

$

68,465

 

 

$

70,336

 

 

(1)

Includes the effects of interest rate swaps.

(2)

Scheduled maturity dates for finance lease obligations range from May 2022 to November 2027.

(3)

Refer to the discussion below under the subheading “─Construction Financing” for further information.

ABL Facility

On December 18, 2018, Unifi, Inc. and certain of its subsidiaries entered into a Third Amendment to Amended and Restated Credit Agreement and Second Amendment to Amended and Restated Guaranty and Security Agreement (the “2018 Amendment”).  The 2018 Amendment amended the Amended and Restated Credit Agreement, dated as of March 26, 2015, by and among Unifi, Inc. and a syndicate of lenders, as previously amended (together with all previous and subsequent amendments, the “Credit Agreement”).  The Credit Agreement provides for a $200,000 senior secured credit facility (the “ABL Facility”), including a $100,000 revolving credit facility (the “ABL Revolver”) and a term loan that can be reset up to a maximum amount of $100,000, once per fiscal year, if certain conditions are met (the “ABL Term Loan”). The ABL Facility has a maturity date of December 18, 2023.

ABL Facility borrowings bear interest at LIBOR plus an applicable margin of 1.25% to 1.75%, or the Base Rate (as defined in the Credit Agreement) plus an applicable margin of 0.25% to 0.75%, with interest currently being paid on a monthly basis. As of September 26, 2021 and June 27, 2021, ABL Facility borrowings carried interest at LIBOR plus 1.25%.

UNIFI currently maintains three interest rate swaps that fix LIBOR at approximately 1.9% on $75,000 of variable-rate debt. Such swaps are scheduled to terminate in May 2022.

Construction Financing

In May 2021, UNIFI entered into an agreement with a third party lender that provides for construction-period financing for certain texturing machinery anticipated in our capital allocation plans. UNIFI will record project costs to construction in progress and the corresponding liability to construction financing (within long-term debt). The agreement provides for monthly, interest-only payments during the construction period, at a rate of LIBOR plus 2.2%, and contains terms customary for a financing of this type.

The agreement provides for 60 monthly payments, which will commence upon the completion of the construction period with an interest rate of approximately 2.8%. In connection with this construction financing arrangement, UNIFI recorded long-term debt of $1,764 as of September 26, 2021.

Scheduled Debt Maturities

The following table presents the scheduled maturities of UNIFI’s outstanding debt obligations for the remainder of fiscal 2022, the following four fiscal years and thereafter:

 

 

 

Fiscal 2022

 

 

Fiscal 2023

 

 

Fiscal 2024

 

 

Fiscal 2025

 

 

Fiscal 2026

 

 

Thereafter

 

ABL Revolver

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

ABL Term Loan

 

 

10,000

 

 

 

10,000

 

 

 

55,000

 

 

 

 

 

 

 

 

 

 

Finance lease obligations

 

 

2,618

 

 

 

1,257

 

 

 

1,301

 

 

 

1,195

 

 

 

733

 

 

 

444

 

Total (1)

 

$

12,618

 

 

$

11,257

 

 

$

56,301

 

 

$

1,195

 

 

$

733

 

 

$

444

 

 

 

(1)

Total reported excludes $1,764 for construction financing, described above.