Quarterly report pursuant to sections 13 or 15(d)

Debt

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3 Months Ended
May 03, 2014
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3.  Debt

 

On April 12, 2013, we entered into a Third Amended and Restated Credit Agreement (as amended, the “Credit Agreement”).  The Credit Agreement provides for a senior revolving credit facility of $300.0 million, with possible future increases to $450.0 million under an expansion feature and matures on April 12, 2018.  As of May 3, 2014, there were no borrowings outstanding under the senior revolving credit facility.

 

On August 6, 2013, we borrowed $100.0 million under the term loan (the “Term Loan”) provision of our Credit Agreement which will be repaid over five years, with 10% payable annually in quarterly installments and the remainder due at maturity.  The interest rate on the Term Loan is based on the monthly LIBOR rate plus 1.75%.  In conjunction with the Term Loan, we also entered into an interest rate swap in which the variable rate payments due under the Term Loan were exchanged for a fixed rate of 1.27%, resulting in a combined interest rate of 3.02%.  See Note 11 for additional details on the interest rate swap.  As of May 3, 2014, there was $95.0 million outstanding under the Term Loan.

 

We utilize letters of credit primarily to secure inventory purchases and as collateral for workers compensation claims.  At May 3, 2014, letters of credit totaling approximately $21.6 million were issued and outstanding.   Borrowings available under our Credit Agreement at May 3, 2014 were $278.4 million.