Unifi to use revolver to finance $10 million redemption of 11½% notes

By Toni Weeks

San Diego, July 6 - Unifi, Inc. said it will use borrowings under its existing secured asset-based revolving credit facility and cash on hand to finance its planned redemption of $10 million of 11½% senior secured notes due 2014, according to a press release.

The company said it has roughly $32 million of outstanding borrowings under the revolver and about $57.1 million of availability.

The redemption will occur Aug. 5 at a redemption price of 102.875 plus accrued interest.

Following the transaction, $123.7 million of the notes will remain outstanding.

The redemption will result in a one-time pre-tax charge of $500,000, or $0.02 per share, in the fiscal 2012 first quarter for early extinguishment of debt. The charge will consist of a $200,000 non-cash charge related to the write-off of the unamortized debt issuance costs and $300,000 of call premiums related to the redemption price.

Unifi makes multi-filament polyester and nylon textured yarns and related raw materials and is based in Greensboro, N.C.

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