Unifi Inc. and Unifi Manufacturing, Inc. as borrowers, entered into a first amendment to credit agreement with Wells Fargo Bank, N.A. as agent for the lenders, and certain lenders party thereto, which amendment amends that certain credit agreement dated as of May 24, 2012 providing for a $150 million senior secured credit facility. The parties entered into the amendment in connection with the company's anticipated January 2013 voluntary repayment in full of outstanding amounts under the term B loan to the credit agreement dated as of May 24, 2012 among the Unifi, Inc. and UMI, as borrowers, and Wilmington Trust, National Association, as administrative agent, and MacKay Shields LLC, solely in its capacity as investment advisor or sub adviser with investment authority for certain discretionary client accounts. The amendment modifies the definition of fixed charges" in schedule 1.1 of the existing ABL credit agreement to provide that the amount of fixed charges, as defined in the existing ABL credit agreement, shall not include any mandatory or voluntary prepayments of the term B loan made after December 25, 2012 and prior to February 4, 2013, in an amount not to exceed $13.8 million.

The amendment enables the company to prepay in full the term B loan, which the company expects to finance using cash from operations and borrowings from the revolving credit facility under the ABL facility.