Revolving Credit Facilities and Debt

12 Months Ended

Feb. 03, 2018

Debt Disclosure [Abstract]

Revolving Credit Facilities and Debt

8. Revolving Credit Facilities and Debt

On February 5, 2016, the Company entered into an asset-based revolving credit agreement with Wells Fargo Bank, National Association, which provides for a senior secured revolving credit facility of up to $100 million (“ABL Facility”), subject to a borrowing base, with a letter of credit sub-limit of $10 million. The ABL Facility is available for working capital and other general corporate purposes.  The ABL Facility will mature on February 5, 2021.

The ABL Facility is secured by a first-priority security interest in substantially all of the personal property (but not the real property) of the Company.  Amounts borrowed under the ABL Facility bear interest, at the Company’s option, at either an adjusted LIBOR rate plus a margin of 1.25% to 1.75% per annum, or an alternate base rate plus a margin of 0.25% to 0.75% per annum. The Company is also required to pay a fee of 0.25% per annum on undrawn commitments under the ABL Facility. Customary agency fees and letter of credit fees are also payable in respect of the ABL Facility.

There were no borrowings outstanding under the ABL Facility at February 3, 2018 or January 28, 2017.  We had no open commercial letters of credit outstanding under our secured revolving credit facility at February 3, 2018 or January 28, 2017.

Additionally, we have revolving lines of credit with UniCredit Bank Austria of up to 20.5 million Euro ($25.6 million) at February 3, 2018, the proceeds of which are used to fund certain international operations.  The revolving lines of credit bears interest at 1.65%.  There was $0.9 million in borrowings outstanding under the revolving lines of credit at February 3, 2018 and no borrowing outstanding at January 28, 2017. There were no open commercial letters of credit outstanding under these revolving lines of credit at February 3, 2018 and January 28, 2017.