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DEBT AND FINANCING ARRANGEMENTS
3 Months Ended
May 03, 2014
DEBT AND FINANCING ARRANGEMENTS  
DEBT AND FINANCING ARRANGEMENTS

NOTE 5DEBT AND FINANCING ARRANGEMENTS

 

The following are the components of debt and financing arrangements:

 

(dollar amounts in thousands)

 

May 3, 2014

 

February 1, 2014

 

Senior Secured Term Loan, due October 2018

 

$

197,500

 

$

198,000

 

Revolving Credit Agreement, through July 2016

 

7,000

 

3,500

 

Long-term debt

 

204,500

 

201,500

 

Current maturities

 

(2,000

)

(2,000

)

Long-term debt less current maturities

 

$

202,500

 

$

199,500

 

 

The Company has a Revolving Credit Agreement (the “Agreement”) with available borrowings up to $300.0 million and a maturity of July 2016.  As of May 3, 2014, the Company had $7.0 million in borrowings outstanding under the Agreement and $45.4 million of availability was utilized to support outstanding letters of credit. Taking this into account and the borrowing base requirements (including reduction for amounts outstanding under the supplier financing program), as of May 3, 2014 there was $147.8 million of availability remaining under the Agreement.

 

The Company’s debt agreements require compliance with covenants. The most restrictive of these covenants, an earnings before interest, taxes, depreciation and amortization (“EBITDA”) requirement, is triggered if the Company’s availability under its Revolving Credit Agreement plus unrestricted cash drops below $50.0 million. As of May 3, 2014, the Company was in compliance with all financial covenants contained in its debt agreements.

 

The Company has a supplier financing program with availability up to $200.0 million which is funded by various bank participants who have the ability, but not the obligation, to purchase account receivables owed by the Company directly from suppliers. The Company, in turn, makes the regularly scheduled full supplier payments to the bank participants. There was an outstanding balance of $134.1 million and $129.8 million under the program as of May 3, 2014 and February 1, 2014, respectively.

 

Interest rates that are currently available to the Company for issuance of debt with similar terms and remaining maturities are used to estimate fair value for debt obligations and are considered a level 2 measure under the fair value hierarchy. The estimated fair value of long-term debt including current maturities was $205.2 million and $203.7 million as of May 3, 2014 and February 1, 2014, respectively.