Debt Instruments

9 Months Ended

Dec. 26, 2015

4. During December 2015, the Company exercised $75,000,000 for the in-season facility and $100,000,000 for the off-season facility of the remaining $150,000,000 accordion feature of its existing revolving credit facility pursuant to the Second Amended and Restated Loan and Security Agreement dated July 20, 2011. Maximum borrowings under the Revolver total $400,000,000 from April through July and $475,000,000 from August through March. The Revolver balance as of December 26, 2015 was $309,211,000 and is included in Current Portion of Long-Term Debt in the accompanying Condensed Consolidated Balance Sheet since the Revolver matures on July 20, 2016. The Company utilizes its Revolver for general corporate purposes, including seasonal working capital needs, to pay debt principal and interest obligations, and to fund capital expenditures and acquisitions. Seasonal working capital needs are affected by the growing cycles of the vegetables and fruits the Company processes. The majority of vegetable and fruit inventories are produced during the months of June through November and are then sold over the following year. Payment terms for vegetable and fruit produce are generally three months but can vary from a few days to seven months. Accordingly, the Company’s need to draw on the Revolver may fluctuate significantly throughout the year.

The increase in average amount of Revolver borrowings during the first nine months of fiscal 2016 compared to the first nine months of fiscal 2015 was attributable to the Gray & Company acquisition of $23,784,000 made in the third quarter of fiscal 2016, the $23,100,000 pension contribution made in fiscal 2016 and Inventories which are $84,032,000 higher than the same period last year, partially offset by the $24,275,000 received from General Mills for the agreement assignment to B&G Foods and increased operating results in the first nine months of fiscal 2016 as compared to the first nine months of fiscal 2015.

General terms of the Revolver include payment of interest at LIBOR plus a defined spread.

The following table documents the quantitative data for Revolver borrowings during the third quarter and year-to-date periods of fiscal 2016 and fiscal 2015:

		Third Quarter						Year-to-Date
	2016			2015			2016			2015
		(In thousands)						(In thousands)
Reported end of period:
Outstanding borrowings	$	309,211		$	255,000		$	309,211		$	255,000
Weighted average interest rate		1.82	%		1.91	%		1.82	%		1.91	%
Reported during the period:
Maximum amount of borrowings	$	323,980		$	323,646		$	323,980		$	323,646
Average outstanding borrowings	$	285,576		$	273,927		$	245,520		$	228,730
Weighted average interest rate		1.90	%		1.57	%		1.93	%		1.52	%