DEBT

Short-Term Borrowings

The Company has the ability to draw revolving borrowings under its senior secured credit facilities, as discussed in the section entitled “2016 Senior Secured Credit Facilities” below. As of August 5, 2018, the Company had $67.5 million outstanding under these facilities. The weighted average interest rate on funds borrowed as of August 5, 2018 was 3.59%. The maximum amount of revolving borrowings outstanding under these facilities during the twenty-six weeks ended August 5, 2018 was $274.4 million.

Additionally, the Company has the availability to borrow under short-term lines of credit, overdraft facilities and short-term revolving credit facilities denominated in various foreign currencies. These facilities provided for borrowings of up to $98.5 million based on exchange rates in effect on August 5, 2018 and are utilized primarily to fund working capital needs. As of August 5, 2018, the Company had $17.9 million outstanding under these facilities. The weighted average interest rate on funds borrowed as of August 5, 2018 was 0.20%. The maximum amount of borrowings outstanding under these facilities during the twenty-six weeks ended August 5, 2018 was $38.6 million.

Long-Term Debt

The carrying amounts of the Company’s long-term debt were as follows:



(In millions)	8/5/18		2/4/18		7/30/17

Senior secured Term Loan A facility due 2021	$	1,707.9	$	1,792.1	$	1,990.9
4 1/2% senior unsecured notes due 2022	—		—		691.2
7 3/4% debentures due 2023	99.6		99.5		99.5
3 5/8% senior unsecured euro notes due 2024 ⁽¹⁾	400.1		430.8		404.1
3 1/8% senior unsecured euro notes due 2027 ⁽¹⁾	685.9		738.9		—
Total	2,893.5		3,061.3		3,185.7
Less: Current portion of long-term debt	—		—		—
Long-term debt	$	2,893.5	$	3,061.3	$	3,185.7

⁽¹⁾ The carrying amount of the Company’s senior unsecured euro notes includes the impact of changes in the exchange rate of the United States dollar against the euro.

Please see Note 12, “Fair Value Measurements,” for the fair value of the Company’s long-term debt as of August 5, 2018, February 4, 2018 and July 30, 2017.

As of August 5, 2018, the Company’s mandatory long-term debt repayments for the remainder of 2018 through 2023 were as follows:



(In millions)
Fiscal Year	Amount
Remainder of 2018	$	—
2019	—
2020	188.5
2021	1,525.8
2022	—
2023	100.0

Total debt repayments for the remainder of 2018 through 2023 exceed the total carrying amount of the Company’s Term Loan A facility and 7 3/4% debentures due 2023 as of August 5, 2018 because the carrying amount reflects the unamortized portions of debt issuance costs and the original issue discounts.

As of August 5, 2018, after taking into account the effect of the Company’s interest rate swap agreement discussed in the section entitled “2016 Senior Secured Credit Facilities,” which was in effect as of such date, approximately 50% of the Company’s long-term debt had a fixed interest rate, with the remainder at variable interest rates.

2016 Senior Secured Credit Facilities

The Company has senior secured credit facilities due May 19, 2021 (the “2016 facilities”) that consist of a $2,347.4 million United States dollar-denominated Term Loan A facility and senior secured revolving credit facilities consisting of (i) a $475.0 million United States dollar-denominated revolving credit facility, (ii) a $25.0 million United States dollar-denominated revolving credit facility available in United States dollars or Canadian dollars and (iii) a €185.9 million euro-denominated revolving credit facility available in euro, British pound sterling, Japanese yen or Swiss francs. Borrowings under the 2016 facilities bear interest at variable rates calculated in a manner as set forth in the terms of the 2016 facilities.

The Company had loans outstanding of $1,707.9 million, net of original issue discounts and debt issuance costs, under the Term Loan A facility, $67.5 million of borrowings outstanding under the senior secured revolving credit facilities and $21.6 million of outstanding letters of credit under the senior secured revolving credit facilities as of August 5, 2018.

The Company made payments of $85.0 million and $50.0 million during the twenty-six weeks ended August 5, 2018 and July 30, 2017, respectively, on its term loans under the 2016 facilities. As a result of the voluntary repayments the Company has made to date, it is not required to make a long-term debt repayment until March 2020.

During the second quarter of 2018, the Company entered into an interest rate swap agreement for a 30-month term commencing on August 6, 2018. The agreement was designed with the intended effect of converting a notional amount of $50.0 million of the Company’s variable rate debt obligation to fixed rate debt. Under the terms of the agreement for the notional amount, the Company’s exposure to fluctuations in the one-month London interbank borrowing rate (“LIBOR”) will be eliminated and the Company will pay a fixed rate of 2.6825%, plus the current applicable margin.

During the second quarter of 2017, the Company entered into an interest rate swap agreement for a two-year term commencing on February 20, 2018. The agreement was designed with the intended effect of converting an initial notional amount of $306.5 million of the Company’s variable rate debt obligation to fixed rate debt. Such agreement remains outstanding with a notional amount of $244.0 million as of August 5, 2018. Under the terms of the agreement for the then-outstanding notional amount, the Company’s exposure to fluctuations in the one-month LIBOR is eliminated and the Company will pay a fixed rate of 1.566%, plus the current applicable margin.

The notional amount of the outstanding interest rate swap that commenced on February 20, 2018 is adjusted according to a pre-set schedule during the term of the swap agreement such that, based on the Company’s projections for future debt repayments, the Company’s outstanding debt under the Term Loan A facility is expected to always equal or exceed the combined notional amount of the then-outstanding interest rate swaps.

During the second quarter of 2014, the Company entered into an interest rate swap agreement for a two-year term commencing on February 17, 2016. The agreement was designed with the intended effect of converting an initial notional amount of $682.6 million of the Company’s variable rate debt obligation to fixed rate debt. Under the terms of the agreement for the then-outstanding notional amount, the Company’s exposure to fluctuations in the one-month LIBOR was eliminated and the Company paid a weighted average fixed rate of 1.924%, plus the current applicable margin. The agreement expired in February 2018.

4 1/2% Senior Notes Due 2022

The Company had outstanding $700.0 million principal amount of 4 1/2% senior notes due December 15, 2022. The Company redeemed these notes on January 5, 2018 in connection with the issuance of €600.0 million euro-denominated principal amount of 3 1/8% senior notes due December 15, 2027, as discussed below. The Company paid a premium of $15.8 million to the holders of these notes in connection with the redemption and recorded debt extinguishment costs of $8.1 million to write-off previously capitalized debt issuance costs associated with these notes during the fourth quarter of 2017.

7 3/4% Debentures Due 2023

The Company has outstanding $100.0 million of debentures due November 15, 2023 that accrue interest at the rate of 7 3/4%.

3 5/8% Euro Senior Notes Due 2024

The Company has outstanding €350.0 million euro-denominated principal amount of 3 5/8% senior notes due July 15, 2024. Interest on the notes is payable in euros. The Company may redeem some or all of these notes at any time prior to April 15, 2024 by paying a “make whole” premium plus any accrued and unpaid interest. In addition, the Company may redeem some or all of these notes on or after April 15, 2024 at their principal amount plus any accrued and unpaid interest.

3 1/8% Euro Senior Notes Due 2027

The Company issued on December 21, 2017 €600.0 million euro-denominated principal amount of 3 1/8% senior notes due December 15, 2027. Interest on the notes is payable in euros. The Company paid €8.7 million (approximately $10.3 million based on exchange rates in effect on the payment date) of fees during the fourth quarter of 2017 in connection with the issuance of these notes, which are amortized over the term of the notes. The Company may redeem some or all of these notes at any time prior to September 15, 2027 by paying a “make whole” premium plus any accrued and unpaid interest. In addition, the Company may redeem some or all of these notes on or after September 15, 2027 at their principal amount plus any accrued and unpaid interest.

Substantially all of the Company’s assets have been pledged as collateral to secure the Company’s obligations under its 2016 facilities and the 7 3/4% debentures due 2023.

The Company’s financing arrangements contain financial and non-financial covenants and customary events of default. As of August 5, 2018, the Company was in compliance with all applicable covenants under its financing arrangements.

Please refer to Note 8, “Debt,” in the Notes to Consolidated Financial Statements included in Item 8 of the Company’s Annual Report on Form 10-K for the year ended February 4, 2018 for further discussion of the Company’s debt.