FINANCING ARRANGEMENTS

12 Months Ended

Jan. 31, 2020

FINANCING ARRANGEMENTS

FINANCING ARRANGEMENTS

NOTE 9 – FINANCING ARRANGEMENTS

The Company maintains financing arrangements with the Bank that are described in an Amended and Restated Replacement Credit Agreement (the “Credit Agreement”), dated May 15, 2017. The Credit Agreement provides a revolving loan with a maximum borrowing amount of $50.0 million that is available until May 31, 2021 with interest at the 30-day London Interbank Offered Rate (“LIBOR”) plus 2.0%. The Company may also use the borrowing ability to cover other credit instruments issued by the Bank for the Company’s use in the ordinary course of business. As of January 31, 2020 and 2019, the Company had credit outstanding under the Credit Agreement, but no borrowings, in the approximate amounts of $9.9 million and $15.2 million, respectively; approximately 80% of the outstanding amount as of January 31, 2020 relates to the TeesREP project (see Note 4). Additionally, in support of the current project development activities of a VIE (see Note 3), the Bank issued a letter of credit, outside the scope of the Credit Agreement, in the amount of $3.4 million for which the Company has provided cash collateral.

The Company has pledged the majority of its assets to secure its financing arrangements. The Bank’s consent is not required for acquisitions, divestitures, cash dividends or significant investments as long as certain conditions are met. The Bank requires that the Company comply with certain financial covenants at its fiscal year-end and at each of its fiscal quarter-ends. The Credit Agreement also includes other terms, covenants and events of default that are customary for a credit facility of its size and nature. As of January 31, 2020 and 2019, the Company was in compliance with the financial covenants.