Long-term Debt and Borrowing Facilities

3 Months Ended

Apr. 29, 2023

Long-Term Debt, by Current and Noncurrent [Abstract]

The following table provides the Company’s outstanding long-term debt balance, net of unamortized debt issuance costs and discounts, as of April 29, 2023, January 28, 2023 and April 30, 2022:


	April 29, 2023		January 28, 2023		April 30, 2022
	(in millions)
Senior Debt with Subsidiary Guarantee

$314 million, 9.375% Fixed Interest Rate Notes due July 2025 ("2025 Notes")	$	312	$	317	$	317
$297 million, 6.694% Fixed Interest Rate Notes due January 2027 (“2027 Notes”)	284		283		281
$500 million, 5.250% Fixed Interest Rate Notes due February 2028 (“2028 Notes”)	498		498		497
$500 million, 7.500% Fixed Interest Rate Notes due June 2029 ("2029 Notes")	491		491		490
$999 million, 6.625% Fixed Interest Rate Notes due October 2030 ("2030 Notes")	990		991		990
$986 million, 6.875% Fixed Interest Rate Notes due November 2035 (“2035 Notes”)	979		993		992
$643 million, 6.750% Fixed Interest Rate Notes due July 2036 (“2036 Notes”)	638		694		694
Total Senior Debt with Subsidiary Guarantee	$	4,192	$	4,267	$	4,261
Senior Debt
$347 million, 6.950% Fixed Interest Rate Debentures due March 2033 (“2033 Notes”)	$	346	$	349	$	349
$245 million, 7.600% Fixed Interest Rate Notes due July 2037 (“2037 Notes”)	243		246		246
Total Senior Debt	589		595		595
Total Long-term Debt	$	4,781	$	4,862	$	4,856

Repurchases of Notes

During the first quarter of 2023, the Company repurchased in the open market and extinguished $84 million principal amount of its outstanding senior notes. The aggregate repurchase price for these notes was $76 million, resulting in a pre-tax gain of $7 million, net of the write-off of unamortized issuance costs. This gain is included in Other Income in the first quarter of 2023 Consolidated Statement of Income. There were $2 million of repurchases reflected in Accounts Payable on the April 29, 2023 Consolidated Balance Sheet.

The following table provides details of the outstanding principal amount of senior notes repurchased and extinguished during the first quarter of 2023:


	(in millions)
2025 Notes	$	6
2030 Notes	2
2033 Notes	3
2035 Notes	14
2036 Notes	57
2037 Notes	2
Total	$	84

Subsequent to April 29, 2023 through June 2, 2023, the Company repurchased in the open market and extinguished $50 million principal amount of its outstanding senior notes for an aggregate repurchase price of $46 million.

Asset-backed Revolving Credit Facility

The Company and certain of the Company's 100% owned subsidiaries guarantee and pledge collateral to secure an asset-backed revolving credit facility (“ABL Facility”). The ABL Facility, which allows borrowings and letters of credit in U.S. dollars or Canadian dollars, has aggregate commitments of $750 million and an expiration date in August 2026.

Availability under the ABL Facility is the lesser of (i) the borrowing base, determined primarily based on the Company's eligible U.S. and Canadian credit card receivables, accounts receivable, inventory and eligible real property, or (ii) the aggregate commitment. If at any time the outstanding amount under the ABL Facility exceeds the lesser of (i) the borrowing base and (ii) the aggregate commitment, the Company is required to repay the outstanding amounts under the ABL Facility to the extent of such excess. As of April 29, 2023, the Company's borrowing base was $623 million, and it had no borrowings outstanding under the ABL Facility.

The ABL Facility supports the Company’s letter of credit program. The Company had $16 million of outstanding letters of credit as of April 29, 2023 that reduced its availability under the ABL Facility. As of April 29, 2023, the Company's availability under the ABL Facility was $607 million.

As of April 29, 2023, the ABL Facility fees related to committed and unutilized amounts were 0.30% per annum, and the fees related to outstanding letters of credit were 1.25% per annum. In addition, the interest rate on outstanding U.S. dollar borrowings was the London Interbank Offered Rate plus 1.25% per annum. The interest rate on outstanding Canadian dollar-denominated borrowings was the Canadian Dollar Offered Rate plus 1.25% per annum.

The ABL Facility requires the Company to maintain a fixed charge coverage ratio of not less than 1.00 to 1.00 during an event of default or any period commencing on any day when specified excess availability is less than the greater of (i) $70 million or (ii) 10% of the maximum borrowing amount. As of April 29, 2023, the Company was not required to maintain this ratio.