Note 8 - Debt

6 Months Ended

Jan. 01, 2017

Notes to Financial Statements

Debt Disclosure [Text Block]

Note

8

–Debt

The Company

’s current and long-term debt consists of the following:

	January 1, 2017			July 3, 2016
	(in thousands)
Revolver (1)	$	-		$	-
Term Loan (1)		115,000			117,563
Deferred financing costs		(3,980	)		(3,573	)
Total debt		111,020			113,990
Less: current debt		5,750			19,594
Long-term debt	$	105,270		$	94,396

(1)

 

On

December

23,

2016

, the Company 

entered into an Amended and Restated Credit Agreement (the

“2016

Amended Credit Agreement”)

with JPMorgan Chase Bank as administrative agent, and a group of lenders. 

The

2016

Amended Credit Agreement amends and restates the Company

’s existing credit agreement, dated as of

September

30,

2014

 (the

“2014

Agreement”)

 to, among other things, extend the maturity date of the

$115.0

million outstanding term loan ("Term Loan") and the revolving credit facility (the "Revolver") by approximately

two

years to

December

23,

2021.

 The Term Loan is payable in

19

 quarterly installments of principal and interest beginning on

April

2,

2017,

with escalating principal payments, at the rate of

5%

in year

one,

7.5%

in year

two,

10%

in year

three,

12.5%

in year

four,

and

15%

 in year

five,

with the remaining balance of

$61.8

 million due upon maturity. The Revolver, in the aggregate amount of

$200

million, subject to seasonal reduction to an aggregate amount of

$100

million for the period from

January

1

through

August

1,

may

be used for working capital and general corporate purposes, subject to certain restrictions.

For each borrowing under the

2016

Amended Credit Agreement, the Company

may

elect that such borrowing bear interest at an annual rate equal to either

(1)

a base rate plus an applicable margin varying from 

0.75%

to

1.5%,

based on the Company’s consolidated leverage ratio, where the base rate is the highest of (a) the prime rate, (b) the highest of the federal funds rate and the overnight bank funding rate as published by the New York Fed, plus

0.5%

and (c) an adjusted LIBO rate, plus

1%

or

(2)

 an adjusted LIBO rate plus an applicable margin varying from

1.75%

to

2.5%,

  based on the Company’s consolidated leverage ratio.

The

2016

Amended Credit Agreement requires that while any borrowings are outstanding the Company comply with certain financial covenants and affirmative covenants as well as certain negative covenants, that subject to certain exceptions, limit the Company's ability to, among other things, incur additional indebtedness, make certain investmetns and make certain restricted payments.

 The Company was in compliance with these covenants as of

January

1,

2017.

 

The

2016

Amended Credit Agreement is secured by substantially all of the assets of the Company and the Subsidiary Guarantors.

Future principal payments under the term loan are as fo

llows:

$2.9

 million – remainder of fiscal

2017,

$7.2

 million – fiscal

2018,

$10.1

 million – fiscal

2019,

$12.9

 million – fiscal

2020,

$15.8

million - fiscal

2021,

and

$66.1

million thereafter.