Unifi Manufacturing enters $230 million ABL facility in two parts

By Wendy Van Sickle

Columbus, Ohio, Nov. 3 – Unifi, Inc. wholly owned subsidiary Unifi Manufacturing, Inc. amended and restated its credit agreement on Oct. 28 to provide for a $230 million ABL credit facility with Wells Fargo Bank, NA as administrative agent, bookrunner and lead arranger.

The ABL facility comprises a $115 million revolver and a $115 million term loan, both maturing on Oct. 28, 2027.

The agreement amended and restated the company’s credit agreement originally dated March 26, 2015.

Borrowings bear interest at term SOFR plus a margin ranging from 125 basis points to 175 bps based on average quarterly excess availability.

There is an unused line fee of 25 bps.

The revolver is subject to a borrowing base, and the company may request to increase the maximum amount by up to $75 million.

The borrowing base in effect at closing was $81.9 million.

A financial covenant requires Unifi and its subsidiaries to maintain a fixed charge coverage ratio on a monthly basis of at least 1.05x, in the event excess availability falls below the greater of $17.5 million and 10% of the sum of the maximum revolver amount plus the outstanding principal amount of the ABL term loan.

The full $115 million is outstanding under the term loan and is repayable quarterly in installments of $2.3 million with the balance due at maturity.

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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