Revolving Credit Agreement

3 Months Ended

Apr. 30, 2011

Revolving Credit Agreement

Revolving Credit Agreement

Note 9.    Revolving Credit Agreement

At April 30, 2011, the Company maintained a $1.0 billion revolving credit facility (“credit agreement”) with JPMorgan Chase Bank (“JPMorgan”) as the lead agent for various banks, secured by the inventory of Dillard’s, Inc. operating subsidiaries.  The credit agreement expires December 12, 2012.

Borrowings under the credit agreement accrue interest starting at either JPMorgan’s Base Rate minus 0.5% or LIBOR plus 1.0% (1.21% at April 30, 2011) subject to certain availability thresholds as defined in the credit agreement.

Limited to 85% of the inventory of certain Company subsidiaries, availability for borrowings and letter of credit obligations under the credit agreement was $944.5 million at April 30, 2011.  No borrowings were outstanding at April 30, 2011.  Letters of credit totaling $85.8 million were issued under this credit agreement leaving unutilized availability under the facility of approximately $859 million at April 30, 2011.  There are no financial covenant requirements under the credit agreement provided availability exceeds $100 million.  The Company pays an annual commitment fee to the banks of 0.25% of the committed amount less outstanding borrowings and letters of credit.