On May 21, Unifi, Inc. (NYSE:UFI) announced the closing of the sale of its manufacturing facility in Madison, North Carolina, to a third-party buyer. Management notes that the proceeds of the sales are to be allocated to reduce debt, enhance future performance, and strengthen the balance sheet.
A view of a busy textile factory, machines churning away in the background producing yarns.
Unifi, Inc. is a leading fiber science and sustainable synthetic textiles company. It is known for its use of recycling technology to transform waste materials into high-quality, sustainable products. It operates in the Americas, Brazil, and Asia, selling Yarn, Knitters and weavers, and other related products.
The company noted that the sale is valued at $45 million. Management has allocated $25 million of the net proceeds to pay the company’s existing term loan. Whereas, $18.3 million is to be applied to reduce outstanding revolving loans. As a result of this transaction, Unifi, Inc. reduced its term loan balance to $67.0 million and revolving loan balance to $5.6 million.
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