v3.26.1
Short-Term Borrowings and Long-Term Debt
 12 Months Ended
May 30, 2026
Debt Disclosure [Abstract]  
Short-Term Borrowings and Long-Term Debt Short-Term Borrowings and Long-Term Debt
Long-term debt consisted of the following obligations:
(In millions)May 30, 2026May 31, 2025
Syndicated revolving line of credit, due April 2030
$309.2 $330.8 
Term Loan A, 5.3703%, due April 2030
392.5 400.0 
Term Loan B, 5.6203%, due August 2032
547.3 603.1 
Accounts Receivable Securitization Facility, 4.6950% due September 2028
42.9 — 
Supplier financing program1.8 2.0 
Finance lease liability
0.9 1.1 
Total debt$1,294.6  $1,337.0 
Less: Unamortized discount and issuance costs(8.9)(10.4)
Less: Current debt(25.1)(16.0)
Long-term debt$1,260.6 $1,310.6 
In connection with the acquisition of Knoll, in July 2021, the Company entered into a credit agreement that provided for a syndicated revolving line of credit (the "Revolver") and two term loans. The Revolver provided the Company with up to $725.0 million in revolving variable interest borrowing capacity. The term loans consisted of a five-year senior secured "Term Loan A" facility with an aggregate principal amount of $400.0 million and a seven-year senior secured "Term Loan B" facility with an aggregate principal amount of $625.0 million.
In April 2025, the Company entered into an amendment to the Credit Agreement. Amended terms for the Revolver and Term Loan A included extending the maturity to April 2030, a new amortization schedule of required quarterly principal payments for Term Loan A, and a higher maximum first lien secured net leverage ratio with no step down. At the time of the amendment, the outstanding principal balance of Term Loan A had been reduced below its original principal amount of $400.0 million through scheduled repayments. In connection with the amendment, the Company increased borrowings under Term Loan A to $400.0 million and used the additional proceeds to reduce the outstanding Revolver balance. The Revolver continues to be a $725.0 million facility.
In August 2025, the Company entered into an amendment to the Credit Agreement. Amended terms for Term Loan B include extending the maturity to August 2032, a new amortization schedule of required quarterly principal payments for Term Loan B, and the elimination of the credit spread adjustment for Term Loan B that was added to accommodate the LIBOR to SOFR benchmark transition. The Company reduced the amount borrowed on Term Loan B to $550.0 million. This amendment was accounted for as a debt extinguishment, and the remaining unamortized debt issuance costs of $7.8 million from the original Term Loan B issuance were written off as an expense and recorded within Other expense (income), net on the Consolidated Statements of Comprehensive Income. Debt issuance costs and discounts are deferred and amortized to interest expense over the term of the related debt using the effective interest method. These costs are presented as a direct deduction from the carrying amount of the related debt liability on the Consolidated Balance Sheets.
In February 2026, the Company entered into an amendment to the Credit Agreement. The amendment revised the applicable margin which is part of the stated interest rate applicable to borrowings under the Term Loan B facility. All other material terms remained consistent with those of the Term Loan B Facility executed in August 2025. Unamortized debt issuance costs of $0.2 million were written off as an expense during the quarter and recorded within Other expense (income), net on the Consolidated Statements of Comprehensive Income.
The indebtedness incurred under the revolving line of credit and term loans is secured by substantially all of the Company’s tangible and intangible assets, including, without limitation, the Company’s intellectual property. The Company’s direct and indirect wholly-owned domestic subsidiaries have also guaranteed the obligations of the Company and the foreign borrowers under the revolving line of credit and term loans and pledged substantially all of their tangible and intangible assets as security for their obligations under such guarantee.
Excluding cash flows related to the refinancing of debt that occurred during the year ended May 30, 2026, the Company made aggregate principal payments of $7.5 million and $4.3 million on Term Loan A and B, respectively. During the year ended May 31, 2025, the Company made aggregate principal payments of $35.0 million and $6.3 million on Term Loan A and B, respectively. The Company made interest payments of $62.9 million, $69.1 million, and $70.6 million for the years ended May 30, 2026, May 31, 2025, and June 1, 2024, respectively.
Available borrowings under the syndicated revolving line of credit were as follows for the periods indicated:
(In millions)
May 30, 2026May 31, 2025
Syndicated revolving line of credit borrowing capacity$725.0 $725.0 
Less: Borrowings under the syndicated revolving line of credit309.2 330.8 
Less: Outstanding letters of credit11.8 12.0 
Available borrowings under the syndicated revolving line of credit
$404.0 $382.2 
The senior secured revolving credit facility restricts, without prior consent, the Company's borrowings, capital leases, investments, liens, mergers, consolidations, restricted payments, and the sale of certain assets. In addition, for the Revolver and Term Loan A, the Company agreed to a maximum first lien secured net leverage ratio covenant which is measured by the ratio of first lien debt (less unrestricted cash) to trailing four quarter adjusted consolidated EBITDA (as defined in the credit agreement) and is required to be less than 4.00:1 for each trailing four quarter period except that the Company may elect, under certain conditions, a step-up in the covenant level of 0.50-1.00 for the four subsequent trailing four quarter periods immediately following a permitted acquisition. Adjusted EBITDA is generally defined in the credit agreement as EBITDA adjusted by certain items which include non-cash share-based compensation, non-recurring restructuring costs and extraordinary items. At May 30, 2026 the Company was in compliance with these restrictions and performance ratios.
At May 30, 2026, aggregate annual maturities and scheduled payments of long-term debt are as follows:
(In millions)
2027$25.1 
202825.8 
202976.2 
2030642.2 
20315.5 
Thereafter519.8 
Total $1,294.6 
Accounts Receivable Securitization Facility
In September 2025, the Company entered into a three-year accounts receivable securitization facility (the "Facility"), scheduled to terminate September 2028, in the aggregate amount of up to $90.0 million. Under the terms of the Facility, the Company sells, on a revolving basis, certain accounts receivables to MillerKnoll Receivables LLC, a direct wholly-owned, bankruptcy-remote special purpose entity (the "SPE") of the Company that, in turn, uses the receivables to secure the borrowings, the proceeds of which will be used for general working capital purposes. The SPE is included in the Consolidated Financial Statements and therefore the accounts receivable owned by it are included in our Consolidated Balance Sheets. However, the accounts receivable owned by the SPE are separate and distinct from our other assets and are not available to other creditors should the Company become insolvent. As of May 30, 2026, the SPE held $42.9 million of accounts receivable. The securitization is treated as a secured borrowing for accounting purposes. The outstanding balance as of May 30, 2026 is reported in Long-term debt in the Consolidated Balance Sheets.
Supplier Financing Program
The Company has an agreement with a third-party financial institution that allows certain participating suppliers the ability to finance payment obligations from the Company. Under this program, participating suppliers may finance payment obligations of the Company, prior to their scheduled due dates, at a discounted price to the third-party financial institution.
The Company has lengthened the payment terms for certain suppliers that have chosen to participate in the program. As a result, certain amounts due to suppliers have payment terms that are longer than standard industry practice and as such, these amounts have been excluded from "Accounts payable" in the Consolidated Balance Sheets as the amounts have been accounted for by the Company as a current debt, within "Short-term borrowings and current portion of long-term debt". The liability related to the supplier financing program was $1.8 million as of May 30, 2026 and $2.0 million as of May 31, 2025.