Note 3 - Debt

3 Months Ended

Jul. 30, 2022

Notes to Financial Statements

Debt Disclosure [Text Block]

3. DEBT

At July 30, 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 1.05% above the Secured Overnight Financing Rate (SOFR). There were no borrowings outstanding under the Credit Facilities at July 30, 2022 or April 30, 2022. At July 30, 2022, $2.5 million of the Credit Facilities was reserved for standby letters of credit and $97.5 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 SOFR.  Since closing the Loan Facility, $50 million was borrowed and $30 million was outstanding at April 30, 2022.  There were no borrowings outstanding under the Loan Facility at July 30, 2022.  

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 Credit Facilities), and contain other restrictions, none of which are expected to have a material effect on our operations or financial position.  At July 30, 2022, the subsidiary was in compliance with all loan covenants.