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Note 7 - Long-term Debt

9 Months Ended

Dec. 31, 2022

7.	Long-Term Debt

Long-term debt is comprised of the following (in thousands):

	As of
	December 31,		January 1,		March 31,
	2022		2022		2022
Revolving credit facility	$	313,808	$	33,700	$	20,508
Term loan		89,924		93,892		92,900
Other		216		216		216
Total long-term debt		403,948		127,808		113,624
Less current portion		4,000		4,000		4,000
Long-term debt, less current portion	$	399,948	$	123,808	$	109,624

Revolving Credit Facility

On March 24, 2021, the Company entered into a Fourth Amended and Restated Loan and Security Agreement that provides for a senior revolving credit facility of up to $400.0 million that is seasonally adjusted (the “Revolver”). Maximum borrowings under the Revolver total $300.0 million from April through July and $400.0 million from August through March. The Revolver balance is included in Long-Term Debt in the accompanying condensed consolidated balance sheet due to the Revolver’s March 24, 2026 maturity. In order to maintain availability of funds under the facility, the Company pays a commitment fee on the unused portion of the Revolver. The Revolver is secured by substantially all of the Company’s accounts receivable and inventories and contains borrowing base requirements as well as a financial covenant, if certain circumstances apply. 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 the Company packages. The majority of vegetable inventories are produced during the months of June through November and are then sold over the following year. Payment terms for vegetable 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.

On September 14, 2022, the Company entered into a First Amendment to the Fourth Amended and Restated Loan and Security Agreement (the “Amendment”) which amended several provisions to replace LIBOR with SOFR plus a spread adjustment as the interest rate benchmark on the Revolver. The transition to SOFR did not materially impact the interest rates applied to the Company’s borrowings. No other material changes were made to the terms of the Company’s Revolver as a result of the Amendment.

The following table illustrates certain quantitative data for Revolver borrowings during fiscal year 2023 and fiscal year 2022 (in thousands):

	As of:
	December 31,			January 1,			March 31,
	2022			2022			2022
Outstanding borrowings	$	313,808		$	33,700		$	20,508
Weighted average interest rate		5.85	%		1.35	%		1.71	%

	Three Months Ended:						Nine Months Ended:
	December 31,			January 1,			December 31,			January 1,
	2022			2022			2022			2022
Maximum amount of borrowings	$	327,881		$	54,264		$	327,881		$	54,264
Average outstanding borrowings	$	269,833		$	37,112		$	140,996		$	16,250
Weighted average interest rate		5.11	%		1.34	%		4.50	%		1.34	%

Term Loan

On May 28, 2020 the Company entered into an Amended and Restated Loan and Guaranty Agreement that provides for a $100.0 million unsecured term loan (the “Term Loan”), maturing on June 1, 2025. The amended and restated agreement converted the Term Loan to a fixed interest rate of 3.3012% until maturity rather than a variable interest rate in addition to requiring quarterly principal payments of $1.0 million, which commenced during fiscal year 2021. The Company incurred financing costs totaling $0.2 million, which have been classified as a discount to the debt. This agreement contains certain covenants, including maintaining a minimum EBITDA and minimum tangible net worth.

Subsequent to December 31, 2022, the Company amended the Term Loan and entered into a Second Amended and Restated Loan Agreement. Refer to Note 15 “Subsequent Events” for additional information.