Debt

3 Months Ended

May 28, 2022

Debt Disclosure [Abstract]

Debt

Debt

As of May 28, 2022, we had a committed revolving credit facility with maximum borrowings of up to $235 million with a maturity of June 2024. As of May 28, 2022, outstanding borrowings under our revolving credit facility were $99.0 million, while there were no outstanding borrowings under the revolving credit facility as of February 26, 2022. At May 28, 2022 and February 26, 2022, we also had a $150 million term loan with a maturity date of June 2024.

Our revolving credit facility and term loan contain two financial covenants that require us to stay below a maximum debt-to-EBITDA ratio and maintain a minimum ratio of EBITDA-to-interest expense. Both ratios are computed quarterly, with EBITDA calculated on a rolling four-quarter basis. At May 28, 2022, we were in compliance with both financial covenants. Additionally, at May 28, 2022, we had a total of $16.4 million of ongoing letters of credit related to industrial revenue bonds, construction contracts and insurance collateral that expire in fiscal years 2023 to 2032 and reduce borrowing capacity under the revolving credit facility.

At May 28, 2022, debt included $12.0 million of industrial revenue bonds that mature in fiscal years 2036 through 2043. In March 2022, a $1.0 million industrial revenue bond matured and was repaid. The fair value of all industrial revenue bonds approximated carrying value at May 28, 2022, due to the variable interest rates on these instruments. Our credit facility, term loan and industrial revenue bonds would be classified as Level 2 within the fair value hierarchy described in Note 4.

We also maintain two Canadian committed, revolving credit facilities totaling $25.0 million (USD). As of May 28, 2022 and February 26, 2022, there were no borrowings outstanding under the facilities.

Interest payments were $1.1 million for each of the three-months ended May 28, 2022 and May 29, 2021, respectively.