Credit Facilities And Long-Term Debt

12 Months Ended

May 28, 2016

Credit Facilities And Long-Term Debt [Abstract]

9. Credit Facilities and Long-Term Debt

Long-term debt consisted of the following (in thousands except interest rate and installment data):



	May 28		May 30
	2016		2015

Note payable at 6.20%, due in monthly principal installments of $250,000, plus interest, maturing in 2019	$	10,500	$	13,500
Note payable at 6.35%, due in monthly principal installments of $100,000, plus interest, maturing in 2017		9,100		10,300
Note payable at 5.40%, due in monthly principal installments of $125,000, plus interest, maturing in 2018		3,250		4,750
Note payable at 6.40%, due in monthly principal installments of $35,000, plus interest, maturing in 2017		2,720		3,140
Note payable at 5.99%, due in monthly principal installments of $150,000, plus interest, repaid in 2016		-		12,700
Series A Senior Secured Notes at 5.45%, due in monthly principal installments of $175,500, plus interest, repaid in 2016		-		6,311
Note payable at 2.00%, due in semi-annual principal and interest payments of $20,790, repaid in 2016		-		159
Total debt		25,570		50,860
Less: current maturities		16,320		10,065
Long-term debt, less current maturities	$	9,250	$	40,795

The aggregate annual fiscal year maturities of long-term debt at May 28, 2016 are as follows (in thousands):



2017	$	16,320
2018		4,500
2019		3,250
2020		1,500
	$	25,570

Certain property, plant, and equipment is pledged as collateral on our notes payable and senior secured notes. Unless otherwise approved by our lenders, we are required by provisions of our loan agreements to (1) maintain minimum levels of working capital (ratio of not less than 1.25 to 1) and net worth (minimum of $90.0 million tangible net worth, plus 45% of cumulative net income); (2) limit dividends paid in any given quarter to not exceed an amount equal to one third of the previous quarter’s consolidated net income (allowed if no events of default), (3) maintain minimum total funded debt to total capitalization (debt to total tangible capitalization not to exceed 55%); and (4) maintain various current and cash-flow coverage ratios (1.25 to 1), among other restrictions. At May 28, 2016, we were in compliance with the financial covenant requirements of all loan agreements. Under certain of the loan agreements, the lenders have the option to require the prepayment of any outstanding borrowings in the event we undergo a change in control, as defined in the applicable loan agreement. Our debt agreements require Fred R. Adams, Jr., the Company’s Founder and Chairman Emeritus, or his family, to maintain ownership of Company shares representing not less than 50% of the outstanding voting power of the Company. We are in compliance with those covenants at May 28, 2016.

Interest, net of amount capitalized, of $1.1 million, $2.3 million, and $3.2 million was paid during fiscal 2016, 2015 and 2014, respectively. Interest of $1.1 million, $1.2 million and $603,000 was capitalized for construction of certain facilities during fiscal 2016, 2015 and 2014, respectively.