Long-Term Debt

9 Months Ended

Nov. 30, 2011

Long-Term Debt [Abstract]

Long-Term Debt

8. Long-Term Debt

Long-term debt consisted of the following as of the dates indicated (in thousands):

	November 30, 2011		February 28, 2011
Revolving credit facility	$	50,000	$	50,000
Interest rate swap		—		586
		50,000		50,586
Less current installments		50,000		—
Long-term debt	$	—	$	50,586

On August 18, 2009, the Company entered into a Second Amended and Restated Credit Agreement (the “Facility”) with a group of lenders led by Bank of America, N.A. (the “Lenders”). The Facility provides the Company access to $150.0 million in revolving credit, which the Company may increase to $200.0 million in certain circumstances, and matures on August 18, 2012. The Facility bears interest at the London Interbank Offered Rate (“LIBOR”) plus a spread ranging from 2.0% to 3.5% (LIBOR + 2.25% or 2.52% at November 30, 2011 and 2.51% at November 30, 2010), depending on the Company’s total funded debt to EBITDA ratio, as defined. As of November 30, 2011, the Company had $50.0 million of borrowings under the revolving credit line and $3.5 million outstanding under standby letters of credit arrangements, leaving the Company availability of approximately $96.5 million. The Facility contains financial covenants, restrictions on capital expenditures, acquisitions, asset dispositions, and additional debt, as well as other customary covenants, such as the total funded debt to EBITDA ratio, as defined. The Company is in compliance with these covenants as of November 30, 2011. The Facility is secured by substantially all of the Company’s domestic assets as well as all capital securities of each Domestic Subsidiary and 65% of all capital securities of each direct Foreign Subsidiary.

During the first quarter of this fiscal year, the Company reclassified its obligations due under the Facility from a long-term obligation to a short-term obligation as the maturity of the current Facility is within one year. The Company intends to renew this Facility and extend the maturity date before its expiration. The Company capitalized $0.5 million and $1.2 million of interest expense for the three and nine months ended November 30, 2010 relating to the construction of its apparel manufacturing facility in Agua Prieta, Mexico. There was no interest expense capitalized for the three and nine months ended November 30, 2011 as construction was substantially complete at the beginning of fiscal year 2012.