Unifi amends credit facility for trigger level on coverage ratio

Chicago, Sept. 8 – Unifi, Inc. and wholly owned subsidiary Unifi Manufacturing, Inc. amended their $200 million credit agreement with Wells Fargo Bank, NA as administrative agent and lender and with Bank of America, NA also as a lender on Sept. 2, according to an 8-K filing with the Securities and Exchange Commission.

The central change to the credit facility is to modify the trigger level relating to the fixed-charge coverage ratio so that it occurs when excess availability falls below $16.5 million starting Sept. 2 and for the next 60 days. After that, it will be the greater of $10 million, 20% of the maximum revolver amount and 12.5% of the sum of the maximum revolver amount plus the outstanding principal amount of the term loan.

The $200 million facility is split into a $100 million revolver and a term loan that can be reset up to a maximum amount of $100 million once per fiscal year.

The credit facility dates to March 26, 2015. This is the sixth amendment.

Unifi is a Greensboro, N.C.-based producer and processor of multi-filament polyester and nylon textured yarns and related raw materials.

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