Note 5 - Revolving Credit Facility

6 Months Ended

Sep. 30, 2017

Notes to Financial Statements

Debt Disclosure [Text Block]

5. Revolving Credit Facility

The Company completed the closing of a new five -year revolving credit facility (“Revolver”) on July 5, 2016. Maximum borrowings under the Revolver total $400,000,000 from April through July and $500,000,000 from August through March.   The Revolver balance as of September 30, 2017 was $272,609,000 and is included in Long-Term Debt in the accompanying Condensed Consolidated Balance Sheet since the Revolver matures on July 5, 2021. 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 decrease in average amount of Revolver borrowings during the

first

six

months of fiscal

2018

compared to the

first

six

months of fiscal

2017

was attributable to the

$100,000,000

term loan from Farm Credit less the acquisition of

$14,420,000

made during the

first

six

months of fiscal

2018,

Accounts Receivables which are

$3,526,000

higher than the same period last year (excluding the amount from the acquisition), and total Inventories, excluding the inventories of the acquisition, which are

$41,386,000

higher than the same period last year, partially offset by net earnings in the last

twelve

months ended

September 30, 2017

of

$4,171,000.

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

second

quarter and year-to-date periods of fiscal

2018

and fiscal

2017:

	Second Quarter						Year-to-Date
	2018			2017			2018			2017
	(In thousands)						(In thousands)
Reported end of period:
Outstanding borrowings	$	272,609		$	342,935		$	272,609		$	342,935
Weighted average interest rate		2.75	%		1.88	%		2.75	%		1.88	%
Reported during the period:
Maximum amount of borrowings	$	274,117		$	361,800		$	274,117		$	361,800
Average outstanding borrowings	$	244,160		$	314,102		$	229,235		$	284,287
Weighted average interest rate		2.58	%		1.78	%		2.45	%		1.93	%