Unifi completed a $60 million cash sale of industrial and manufacturing property in Yadkin County, North Carolina, which it described as non-strategic. The proceeds were used to pay off all outstanding term-loan principal and reduce its revolving borrowings.
The company also released results for its fiscal first quarter, ended September 27, and reported the outcome of its annual shareholder meeting. The materials provided here do not include the quarter’s financial figures.
Key details
- Property sale: Unifi’s subsidiary sold the property to Enovum Data Centers for $60 million. A $2.25 million deposit previously held in escrow was credited toward the purchase price.
- Use of proceeds: Net sale proceeds first repaid the outstanding principal on Unifi’s term loans in full. The remaining proceeds went toward a partial repayment of revolving loans. The company did not specify the remaining balance of those borrowings.
- Credit agreement change: Unifi amended its credit agreement to allow the property sale and the use of its proceeds for debt repayment. The amendment permits proceeds to be applied to revolving loans after the term loans are repaid.
- Operations: The company said the sale preserves its current operations and customer service.
- Quarterly results: Unifi issued its fiscal first-quarter results on October 29 and planned a conference call for October 30. No revenue, earnings or other operating results are included in the material provided here.
- Shareholder votes: Shareholders elected all eight director nominees, approved executive compensation for fiscal 2026 on an advisory basis, and ratified KPMG as auditor for fiscal 2027.
- Director vote: Rhonda L. Ramlo received notably more opposition than the other nominees: about 2.05 million votes against her, compared with roughly 113,000 to 432,000 against each of the others.
Plain-English implications
The property sale converts real estate into cash that Unifi used to reduce borrowings: its term loans are fully repaid, and its revolving debt is lower, though not eliminated. The vote results also show that shareholders approved the compensation and auditor proposals, while expressing substantially more opposition to one director nominee than to the rest.