Unifi, Inc. and Unifi Manufacturing, Inc. Enters into A Credit Agreement with Wells Fargo Bank, National Association
October 30, 2024 at 08:02 am EDT
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On October 25, 2024, Unifi, Inc. (the ?Company?) and Unifi Manufacturing, Inc., a subsidiary of the Company, as borrowers (collectively, the ?Borrowers?) entered into a Credit Agreement (the ?Credit Agreement?) with Wells Fargo Bank, National Association, as administrative agent (in such capacity ?Wells Fargo?), and the lenders party thereto, providing for a $25.0 million revolving credit facility (the ?2024 Facility?). The 2024 Facility has a Maturity Date of the earlier of (a) October 28, 2027 and (b) the termination or refinancing of the Company?s existing Second Amended and Restated Credit Agreement, dated as of October 28, 2022, between, among others, the Borrowers and Wells Fargo (as amended, the ?Existing ABL Credit Agreement?). Certain capitalized terms used but not defined herein have the meanings given to them in the Credit Agreement. The 2024 Facility is secured by certain assets of Kenneth G. Langone (the ?Guarantor?) pursuant to a Guaranty and Pledge Agreement between the Guarantor and Wells Fargo (the ?Guaranty and Pledge Agreement?). Kenneth G. Langone, the Guarantor, is a member of the Company?s Board of Directors. As evidence of his long-standing support of the Company and its management, and to avoid any conflict of interest with the Company and to continue to maintain his independence as a director, Mr. Langone declined to receive any consideration from the Company in connection with the Guaranty and Pledge Agreement. Borrowings under the 2024 Facility bear interest at a rate per annum of Daily Simple SOFR plus ninety basis points (0.90%). The 2024 Facility includes representations and warranties by the Loan Parties and their respective subsidiaries that are usual and customary for revolving credit facilities of this type. The 2024 Facility includes events of default that are usual and customary for revolving credit facilities of this type, including, among others, the occurrence of an event of default under the Existing ABL Credit Agreement. Upon the occurrence of an event of default under the Credit Agreement, the Lenders may terminate their commitments and accelerate the maturity of the outstanding obligations thereunder. Borrowings under the 2024 Facility have no scheduled repayment dates prior to the Maturity Date and the Borrowers may repay the principal amount outstanding under the 2024 Facility at any time, subject to compliance with the limitations contained in the Existing ABL Credit Agreement.
The 2024 Facility contains no financial covenants. The 2024 Facility is subject to an unused line fee of 0.25%, assessed monthly based on the difference in borrowings outstanding and borrowing capacity under the 2024 Facility.
UNIFI, Inc. specializes in fiber science and sustainable synthetic textiles. The Company, using recycling technology, is a pioneer in scaling the transformation of post-industrial and post-consumer waste into sustainable products. REPREVE, its brand of recycled performance fiber and resin. Its segments include Americas Segment, Brazil Segment and Asia Segment. It manufactures and sells recycled and synthetic products, made from polyester and nylon, primarily to other yarn manufacturers and knitters and weavers that produce yarn and/or fabric for the apparel, hosiery, home furnishings, automotive, industrial, medical, and other end-use markets. Its products include filament yarn, spun yarn, staple fiber, resin, and rPET Flake. Its performance technology includes anti-odor, color, comfort, moisture, protection, stretch, sustainable and temperature. The Company has direct manufacturing operations in four countries and participates in a joint venture operating in the United States.
UNIFI, INC. 
