Note 3 - Financed Receivables
|9 Months Ended|
Dec. 26, 2020
|Notes to Financial Statements|
|Debt Disclosure [Text Block]||
March 11, 2019,the Company entered into an Amended and Restated Business Financing Agreement (the “Restated Financing Agreement”) with Western Alliance Bank, as successor to Bridge Bank. The Restated Financing Agreement amends, restates and replaces a credit agreement with Bridge Bank dated
May 6, 2015 (as previously amended, the “Previous Financing Agreement”) in its entirety.
Under the Restated Financing Agreement, Western Alliance Bank
mayadvance up to
85%of the amounts of invoices issued by the Company, up to a maximum of
$2.5million in aggregate advances outstanding at any time. The Restated Financing Agreement eliminated a
$500,000non-formula borrowing base and an asset coverage ratio financial covenant included in the Previous Financing Agreement.
Under the Restated Financing Agreement, interest accrues on outstanding amounts at an annual rate equal to
onepercent plus the greater of the prime rate or
4.5%.The Company is required to pay certain fees, including an annual facility fee of
$14,700,to be paid in
twoequal semiannual installments. The Company's obligations under the Restated Financing Agreement are secured by a security interest in substantially all of the assets of the Company and any domestic subsidiaries, subject to certain customary exceptions. The Restated Financing Agreement has
nospecified term and
maybe terminated by either the Company or Western Alliance Bank at any time.
The Restated Financing Agreement contains customary events of default, including, among others: non-payment of principal, interest or other amounts when due; providing false or misleading representations and information; Western Alliance Bank failing to have an enforceable
firstlien on the collateral; cross-defaults with certain other indebtedness; certain undischarged judgments; bankruptcy, insolvency or inability to pay debts; and a change of control of the Company. Upon the occurrence and during the continuance of an event of default, the interest rate on the outstanding borrowings increases by
500basis points and Western Alliance Bank
maydeclare the loans and all other obligations under the Restated Financing Agreement immediately due and payable.
December 26, 2020and
March 28, 2020,the Company's total outstanding borrowings under the Restated Financing Agreement were
$527,468,respectively, and are included in Loans payable, net of discounts and issuance costs on the Condensed Consolidated Balance Sheet.
The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef