Note 3 - Debt

9 Months Ended

Jan. 29, 2022

Notes to Financial Statements

Debt Disclosure [Text Block]

3. DEBT

At January 29, 2022, a subsidiary of the Company maintained unsecured revolving credit facilities with banks aggregating $100 million (the “Credit Facilities”). The Credit Facilities expire from April 30, 2023 to October 28, 2024 and any borrowings would currently bear interest at 1.0% above one-month LIBOR. There were no borrowings outstanding under the Credit Facilities at January 29, 2022 or May 1, 2021. At January 29, 2022, $3 million of the Credit Facilities was reserved for standby letters of credit and $97 million was available for borrowings.

On December 21, 2021, a subsidiary of the Company entered into an unsecured revolving term loan facility with a national bank aggregating $50 million (the “Loan Facility”). The Loan Facility expires December 31, 2023 and borrowings bear interest at .95% above the Adjusted Daily Secured Overnight Funding Rate (SOFR). Since closing the Loan Facility, $50 million was borrowed and remains outstanding at January 29, 2022. At January 29, 2022, the interest rate was 1.11%.

The Credit Facilities and Loan Facility require the subsidiary to maintain certain financial ratios, including debt to net worth and debt to EBITDA (as defined in the agreements), and contain other restrictions, none of which are expected to have a material effect on our operations or financial position. At January 29, 2022, we were in compliance with all loan covenants.