Note 7 - Revolving Credit Facility

9 Months Ended

Dec. 26, 2020

Notes to Financial Statements

Debt Disclosure [Text Block]

7. Revolving Credit Facility

The Company entered into a five-year revolving credit facility (“Revolver”) on July 5, 2016. Maximum borrowings under the Revolver total $300,000,000 from April through July and $400,000,000 from August through March. The Revolver balance as of December 26, 2020 was $0. 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 nine months of fiscal 2021 compared to the first nine months of fiscal 2020 was attributable to strong earnings during the first nine months of fiscal 2021.

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 for fiscal 2021 and fiscal 2020 (in thousands):

	Third Quarter						Year-to-Date
	2021			2020			2021			2020
Reported end of period:
Outstanding borrowings	$	-		$	114,689		$	-		$	114,689
Weighted average interest rate		-	%		3.27	%		-	%		3.27	%
Reported during the period:
Maximum amount of borrowings	$	81,052		$	137,418		$	107,967		$	151,477
Average outstanding borrowings	$	32,099		$	115,626		$	45,022		$	127,078
Weighted average interest rate		1.87	%		3.40	%		2.92	%		3.75	%