Debt Obligations (Notes)

3 Months Ended

May 05, 2018

DEBT OBLIGATIONS

Debt obligations for each period presented consisted of the following (in thousands):



	May 5, 2018		February 3, 2018		April 29, 2017
Revolving Credit Facility	$	265,049	$	179,288	$	216,454
Finance obligations	1,310		1,549		2,429
Other financing	2,006		2,498		3,949
Total debt obligations	268,365		183,335		222,832
Less: Current portion of debt obligations	2,896		2,985		3,076
Long-term debt obligations	$	265,469	$	180,350	$	219,756

We have a $400.0 million senior secured revolving credit facility (“Revolving Credit Facility”) with a seasonal increase to $450.0 million and a $25.0 million letter of credit sublimit. The Revolving Credit Facility matures on December 16, 2021.

We use the Revolving Credit Facility to provide financing for working capital and general corporate purposes, as well as to finance capital expenditures and to support our letter of credit requirements. Borrowings are limited to the availability under a borrowing base that is determined principally on eligible inventory as defined by the Revolving Credit Facility agreement. Inventory, cash and cash equivalents are pledged as collateral. The daily interest rates are determined by a prime rate or LIBOR, plus an applicable margin, as set forth in the Revolving Credit Facility agreement. For the three months ended May 5, 2018, the weighted average interest rate on outstanding borrowings and the average daily borrowings were 3.15% and $247.5 million, respectively.

Letters of credit issued under the Revolving Credit Facility support certain merchandise purchases and collateralize retained risks and deductibles under various insurance programs. At May 5, 2018, outstanding letters of credit totaled approximately $6.2 million. These letters of credit expire within 12 months of issuance, but may be renewed. Excess availability under the Revolving Credit Facility at May 5, 2018 was $67.2 million.

The Revolving Credit Facility agreement contains covenants which, among other things, restrict, based on required levels of excess availability, (i) the amount of additional debt or capital lease obligations, (ii) the payment of dividends to $30 million in a fiscal year, and (iii) the repurchase of common stock under certain circumstances. The agreement also contains a fixed charge coverage ratio covenant in the event excess availability is below a defined threshold or an event of default has occurred. At May 5, 2018, we were in compliance with the debt covenants of the Revolving Credit Facility agreement and we expect to remain in compliance.