v3.26.1
LONG-TERM DEBT
 9 Months Ended
May 02, 2026
Debt Disclosure [Abstract]  
LONG-TERM DEBT
NOTE 9—LONG-TERM DEBT

The Company’s long-term debt consisted of the following:
(in millions)
Average Interest Rate at
May 2, 2026
Fiscal Maturity YearMay 2,
2026		August 2,
2025
Term Loan Facility (1)
8.40%2031$371 $383 
ABL Credit Facility (2)
4.90%2031929 999 
Senior Notes (3)
6.75%2029385 500 
Debt issuance costs, net(16)(13)
Original issue discount on debt(6)(7)
Long-term debt, including current portion1,663 1,862 
Less: current portion of long-term debt(3)(3)
Long-term debt$1,660 $1,859 
(1) Face value before debt issuance costs of $4 million and $4 million, respectively, and an original issue discount on debt of $6 million and $7 million, respectively.
(2) Face value before debt issuance costs of $9 million and $5 million, respectively.
(3) Face value before debt issuance costs of $3 million and $4 million, respectively.
Term Loan Facility

The term loan agreement dated as of October 22, 2018 (as amended, the “Term Loan Agreement”) provides for a senior secured first lien term loan (the “Term Loan Facility”) in an initial principal amount of $500 million, which is scheduled to mature on May 1, 2031, with a springing maturity of 91 days prior to the maturity of the Senior Notes (defined below), in the event that at least $100 million in principal amount outstanding of such Senior Notes remains outstanding on such date.

The obligations under the Term Loan Facility are guaranteed by most of the Company’s wholly owned subsidiaries, subject to customary exceptions and limitations. The Term Loan Facility is secured by (i) a first-priority lien on substantially all assets other than the ABL Assets (defined below) and (ii) a second-priority lien on substantially all of the ABL Assets, in each case, subject to customary exceptions and limitations, including an exception for owned real property (other than distribution centers) with net book values of less than or equal to $10 million. As of May 2, 2026 and August 2, 2025, there was $609 million and $642 million, respectively, of owned real property pledged as collateral that was included in Property and equipment, net and Prepaid expenses and other current assets in the Condensed Consolidated Balance Sheets.

As of May 2, 2026, the borrowings under the Term Loan Facility bear interest at rates that, at the Company’s option, can be either: (i) a base rate plus a margin of 3.75% or (ii) a SOFR rate plus a margin of 4.75%, provided that the SOFR rate shall never be less than 0.0%.

On December 8, 2025, the Company made a voluntary prepayment of $9 million on the Term Loan Facility funded with proceeds from the sale of the Bismarck, North Dakota distribution center. In connection with this prepayment, the Company incurred an insignificant loss on debt extinguishment which was recorded within Interest expense, net in the Condensed Consolidated Statements of Operations in the second quarter of fiscal 2026.
ABL Credit Facility

On April 1, 2026, the Company entered into an amended and restated loan agreement (the “ABL Loan Agreement”), by and among the Company, SUPERVALU INC. (“Supervalu”), UNFI Wholesale, Inc., and UNFI Distribution Company, LLC (collectively, the “U.S. Borrowers”) and UNFI Canada, Inc. (the “Canadian Borrower” and, together with the U.S. Borrowers, the “Borrowers”), the financial institutions that are parties thereto as lenders (collectively, the “ABL Lenders”), Wells Fargo Bank, N.A. as administrative agent for the ABL Lenders, and the other parties thereto, which provides for a secured asset-based revolving credit facility (the “ABL Credit Facility”) with an aggregate principal amount available of up to $2,530 million, including Revolver Loans (as defined in the ABL Loan Agreement) of up to $2,400 million and a First In, Last Out (“FILO”) tranche of incremental ABL loans of $130 million (the “ABL FILO Loan”). The ABL Credit Facility is scheduled to mature on April 1, 2031. The ABL Credit Facility amended and restated the Company’s existing $2,730 million ABL credit facility dated as of June 3, 2022, as amended from time to time prior to April 1, 2026, including Revolver Loans of up to $2,600 million and a FILO tranche of incremental ABL loans of $130 million. Effective April 1, 2026, the Company used borrowings under the ABL Loan Agreement to repay all amounts outstanding under the existing $2,730 million ABL credit facility. The Company incurred an insignificant loss on debt extinguishment, which was recorded within Interest expense, net in the Condensed Consolidated Statements of Operations in the third quarter of fiscal 2026. Under the new ABL Loan Agreement, the Borrowers may, at their option, request an increase in the aggregate amount of the ABL Credit Facility in an amount of up to $750 million, subject to the satisfaction of certain customary conditions and applicable lenders committing to provide the increase in funding. There is no assurance that additional funding would be available.

Revolver Loans and ABL FILO Loans under the ABL Credit Facility bear interest at rates that, at the Company’s option, can be either at a base rate or Term SOFR plus an applicable margin. The applicable margins and letter of credit fees under the ABL Credit Facility are variable and are dependent upon the prior fiscal quarter’s daily average Availability (as defined in the ABL Loan Agreement), and were as follows:
Range of Facility Rates and Fees (per annum)May 2, 2026
Applicable margin for revolver base rate loans
0.125% - 0.375%
0.125 %
Applicable margin for revolver SOFR and BA loans(1)
1.125% - 1.375%
1.125 %
Applicable margin for FILO base rate loans
1.00% - 1.25%
1.00 %
Applicable margin for FILO SOFR loans
2.00% - 2.25%
2.00 %
Unutilized commitment fees
0.20%
0.20 %
Letter of credit fees
1.25% - 1.50%
1.25 %
(1) The Company utilizes SOFR-based loans and UNFI Canada utilizes bankers’ acceptance rate-based loans.

The ABL Credit Facility is guaranteed by most of the Company’s wholly owned subsidiaries, subject to customary exceptions and limitations. The ABL Credit Facility is secured by (i) a first-priority lien on certain accounts receivable, inventory and certain other assets (collectively, the “ABL Assets”) and (ii) a second-priority lien on all other assets that do not constitute ABL Assets, in each case, subject to customary exceptions and limitations.

Availability under the ABL Credit Facility is subject to a borrowing base consisting of specified percentages of the value of eligible accounts receivable, credit card receivables, inventory, pharmacy receivables and pharmacy prescription files, after adjusting for customary reserves, but at no time shall exceed the aggregate commitments plus the outstanding ABL FILO Loans under the ABL Credit Facility (currently $2,530 million).

As of May 2, 2026, the borrowing base was $2,330 million, reflecting the advance rates described above and $113 million of reserves, which is below the $2,530 million limit of availability. This resulted in total availability of $2,330 million for loans and letters of credit under the ABL Credit Facility. The Company’s unused credit under the ABL Credit Facility was as follows:
(in millions)May 2, 2026
Total availability for ABL loans and letters of credit$2,330 
ABL loans outstanding929 
Letters of credit outstanding199 
Unused credit$1,202 
Senior Notes

On October 22, 2020, the Company issued $500 million of unsecured 6.750% senior notes due October 15, 2028 (the “Senior Notes”). The Senior Notes are guaranteed by most of the Company’s wholly owned subsidiaries, subject to customary exceptions and limitations.

On February 26, 2026, the Company redeemed $115 million aggregate principal amount of the Senior Notes. The redemption was funded with incremental borrowings under the ABL Credit Facility. In connection with this redemption, the Company incurred an insignificant loss on debt extinguishment, which was recorded within Interest expense, net in the Condensed Consolidated Statements of Operations in the third quarter of fiscal 2026. Following the redemption, $385 million aggregate principal amount of the Senior Notes remain outstanding.