Note 9 - Long-term Debt

12 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Debt Disclosure [Text Block]

Note

9.

Long-Term Debt

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

	June 30 , 2019			July 1, 2018
	(in thousands)
Revolver (1)	$	-		$	-
Term Loan (1)		100,000			104,938
Deferred financing costs		(3,027	)		(2,608	)
Total debt		96,973			102,330
Less: current debt		5,000			10,063
Long-term debt	$	91,973		$	92,267

(

1

) On

May 31, 2019,

the Company and certain of its U.S. subsidiaries (collectively, the “Subsidiary Guarantors”) entered into a Second Amended and Restated Credit Agreement (the

“2019

Credit Agreement”) with JPMorgan Chase Bank, N.A. as administrative agent, and a group of lenders. The

2019

Credit Agreement amended and restated the Company’s existing amended and restated credit agreement dated as of

December 23, 2016 (

the

“2016

Credit Agreement”) to, among other modifications: (i) increase the amount of the outstanding term loan (“Term Loan”) from approximately

$97

million to

$100

million, (ii) extend the maturity date of the outstanding Term Loan and the revolving credit facility (“Revolver”) by approximately

29

months to

May 31, 2024,

and (iii) decrease the applicable interest rate margins for LIBOR and base rate loans by

25

basis points. The Term Loan is payable in

19

quarterly installments of principal and interest beginning on

September 29, 2019,

with escalating principal payments, at the rate of

5.0%

per annum for the

first

eight

payments, and

10.0%

per annum for the remaining

11

payments, with the remaining balance of

$62.5

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

2019

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 based on the Company’s consolidated leverage ratio, where the base rate is the highest of (a) the prime rate, (b) the New York fed bank rate rate plus

0.5%

and (c) a LIBOR rate plus

1%

or (

2

) an adjusted LIBOR rate plus an applicable margin varying based on the Company’s consolidated leverage ratio. The

2019

Credit Agreement requires that while any borrowings or commitments 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 investments and make certain restricted payments. The Company was in compliance with these covenants as of

June 30, 2019.

The

2019

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 follows:

$5.0

million – fiscal

2020,

$5.0

million – fiscal

2021,

$10.0

million - fiscal

2022,

$10.0

million – fiscal

2023

and

$70.0

million – fiscal

2024.