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Unifi gets commitment for $180 million in new credit facilities
By Sara Rosenberg
New York, April 24 - Unifi Inc. entered into a commitment for a $150 million five-year senior secured asset-based credit facility and a $30 million five-year term loan B, according to an 8-K filed with the Securities and Exchange Commission on Tuesday.
The asset-based facility consists of a $100 million revolver and a $50 million term loan.
Wells Fargo Securities LLC is the lead arranger, bookrunner and administrative agent on the asset-based deal, and Wilmington Trust is the administrative agent on the B loan. MacKay Shields LLC provided the term loan B commitment.
Pricing on the asset-based revolver will be Libor plus 200 basis points, pricing on the asset-based term loan will be Libor plus 250 bps and pricing on the term loan B will be Libor plus 750 bps with a 1.25% Libor floor.
The asset-based revolver spread can range from Libor plus 175 bps to 225 bps based on the average quarterly excess availability, and the asset-based term loan spread can range from Libor plus 225 bps to 275 bps.
Also, the commitment fee on the revolver can range from 25 bps to 37.5 bps based on the unused maximum revolver amount.
The term loan B has call protection of 103 in year one, 102 in year two and 101 in year three.
Included in the asset-based facility is a fixed charge coverage ratio of at least 1.05 to 1.0, if excess availability falls below the greater of $10 million or 15% of the maximum revolver amount.
Proceeds will be used to redeem the company's $123.7 million 11½% senior secured notes due 2014 and repay an existing credit facility.
Specifically, the company will use $60 million of revolver borrowings, $80 million of term loan borrowings and about $22 million of cash on hand for the notes redemption.
Closing on the new bank debt is expected to occur on May 24.
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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