Debt (Tables)

3 Months Ended

May 01, 2021

Debt Disclosure [Abstract]

Outstanding Indebtedness

Our outstanding indebtedness consisted of the following (dollars in thousands):

	May 1, 2021		January 30, 2021
Credit agreement - Revolving facility (matures April 2026)	$	—	$	105,000
Credit agreement - Term loan facility, net (matures April 2026)	346,928		421,874
4.50% senior notes, net (mature April 2029)	492,625		—
0.75% convertible senior notes, net (mature September 2021)	57,147		56,410
	896,700		583,284
Less: current portion	(61,522)		(81,722)
Long-term debt	$	835,178	$	501,562

Schedule Interest Rates for the Credit Agreement

Under the Credit Agreement, borrowings bear interest at the rates described below based upon our consolidated net leverage ratio, which is the ratio of our consolidated total funded debt reduced by unrestricted cash and equivalents in excess of $25.0 million to our trailing twelve-month consolidated EBITDA, as defined by the Credit Agreement. In addition, we incur certain fees for unused balances and letters of credit at the rates described below, also based upon our consolidated net leverage ratio.

Borrowings - Eurodollar Rate Loans	1.25% - 2.00% plus LIBOR(1)
Borrowings - Base Rate Loans	0.25% - 1.00% plus Base rate(2)
Unused Revolver Commitment	0.20% - 0.40%
Standby Letters of Credit	1.25% - 2.00%
Commercial Letters of Credit	0.625% -1.000%

(1) To address the transition in financial markets away from LIBOR by the end of 2021, the Credit Agreement includes provisions related to the replacement of LIBOR with a LIBOR Successor Rate (as defined in the Credit Agreement), which may be a rate based on the secured overnight financing rate published by the Federal Reserve Bank of New York.

(2) Base rate is described in our Credit Agreement as the highest of (i) the Federal Funds Rate plus 0.50%, (ii) the administrative agent’s prime rate, and (iii) the Eurodollar rate plus 1.00% and, if such rate is less than zero, such rate shall be deemed zero.

The weighted average interest rates and fees for balances under our Credit Agreement as of May 1, 2021 and January 30, 2021 were as follows:

	Weighted Average Rate End of Period
	May 1, 2021	January 30, 2021
Borrowings - Term loan facilities	1.74%	1.63%
Borrowings - Revolving facility	—%	2.14%
Standby Letters of Credit	1.63%	1.50%
Unused Revolver Commitment	0.30%	0.25%

Carrying Value and Fair Value of Notes

The following table summarizes the fair value of the 2029 Notes, net of debt issuance costs. The fair value of the 2029 Notes is based on the closing trading price per $100 of the 2029 Notes as of the last day of trading (Level 2), which was $101.50 as of May 1, 2021 (dollars in thousands):

	May 1, 2021
Fair value of principal amount of 2029 Notes	$	507,500
Less: Debt issuance costs	(7,375)
Fair value of 2029 Notes	$	500,125

Convertible Debt

The liability component of the 2021 Convertible Notes consisted of the following (dollars in thousands):

	May 1, 2021		January 30, 2021
Liability component
Principal amount of 0.75% convertible senior notes due September 2021	$	58,264	$	58,264
Less: Debt discount	(1,003)		(1,665)
Less: Debt issuance costs	(114)		(189)
Net carrying amount of 2021 Convertible Notes	$	57,147	$	56,410

The following table summarizes the fair value of the 2021 Convertible Notes, net of the debt discount and debt issuance costs. The fair value of the 2021 Convertible Notes is based on the closing trading price per $100 of the 2021 Convertible Notes as of the last day of trading for the respective periods (Level 2), which was $108.75 and $104.50 as of May 1, 2021 and January 30, 2021, respectively (dollars in thousands):

	May 1, 2021		January 30, 2021
Fair value of principal amount of 2021 Convertible Notes	$	63,362	$	60,886
Less: Debt discount and debt issuance costs	(1,117)		(1,854)
Fair value of 2021 Convertible Notes	$	62,245	$	59,032

Schedule of Long-term Debt Instruments

The following table summarizes the net carrying value of the 2029 Notes as of May 1, 2021 (dollars in thousands):

	May 1, 2021
Principal amount of 4.50% senior notes due April 2029	$	500,000
Less: Debt issuance costs	(7,375)
Net carrying amount of 2029 Notes	$	492,625