UNIFI, INC. Enters Material Definitive Agreement

TL;DR

UNIFI just signed a big deal, creating a new financial obligation. Details TBD.

AI Summary

On October 25, 2024, UNIFI, INC. entered into a material definitive agreement related to a direct financial obligation. The filing indicates the creation of a financial obligation under an off-balance sheet arrangement. Specific details regarding the nature of the agreement and the financial obligation are not fully disclosed in the provided text.

Why It Matters

This filing signals a significant financial commitment or obligation for UNIFI, INC., which could impact its financial health and future operations.

Risk Assessment

Risk Level: medium — The creation of a new material definitive agreement and financial obligation introduces potential risks related to the terms and execution of this commitment.

Key Players & Entities

• UNIFI, INC. (company) — Registrant
• October 25, 2024 (date) — Date of earliest event reported

FAQ

Key Financial Figures

• $0.10 — ch registered Common Stock, par value $0.10 per share UFI New York Stock Exchan
• $25.0 million — lenders party thereto, providing for a $25.0 million revolving credit facility (the "2024 Fa

Filing Documents

• ufi-20241025.htm (8-K) — 48KB
• ufi-ex4_1.htm (EX-4.1) — 1212KB
• 0000950170-24-118601.txt ( ) — 1536KB
• ufi-20241025.xsd (EX-101.SCH) — 24KB
• ufi-20241025_htm.xml (XML) — 5KB

01. Entry into a Material Definitive Agreement

Item 1.01. Entry into a Material Definitive Agreement. 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

01. Financial Statements and Exhibits

Item 9.01. Financial Statements and Exhibits. (d) Exhibits. Exhibit No. Description 4.1 Credit Agreement, dated as of October 25, 2024, by and among Unifi Manufacturing, Inc. and certain of its domestic affiliates (including, without limitation, Unifi, Inc.), as borrowers, Wells Fargo Bank, National Association, as administrative agent, sole lead arranger and sole book runner, and the lenders party thereto. 104 Cover Page Interactive Data File (embedded within the Inline XBRL document). The information in this Current Report on Form 8-K, including the exhibits attached hereto, is being furnished and shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in any such filing.

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. UNIFI, INC. Date: October 30, 2024 By: /s/ ANDREW J. EAKER Andrew J. Eaker Executive Vice President & Chief Financial Officer Treasurer

View Full Filing

View this 8-K filing on SEC EDGAR