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Subsequent Events
12 Months Ended
Jan. 30, 2021
Subsequent Events [Abstract]  
Subsequent Events

P. SUBSEQUENT EVENTS

 

Registered Direct Offering – Common Stock

On February 5, 2021, the Company sold, pursuant to a stock purchase agreement and through a registered direct offering, an aggregate of 11,111,111 shares of its common stock, for a gross purchase price of $5.0 million, before payment of offering costs. The Company intends to use the net proceeds from the offering for working capital and other general corporate purposes.

New Term Loan

On March 16, 2021, the Company refinanced its existing $15.0 million FILO under its Credit Facility with Bank of America, N.A. and entered into a new $17.5 million first-in, last-out term loan facility (the “new FILO Loan”) with PLC Agent LLC, as FILO Agent and certain lenders party thereto.  Proceeds from the new FILO Loan were used to repay in full the Company’s existing $15.0 million FILO loan with the balance of the proceeds to be used for working capital.  In connection with this new FILO Loan, the Company also entered into the Fourth Amendment to its Seventh Amended and Restated Credit Facility with Bank of America, N.A. (as amended, the “Credit Facility”) to allow for the new FILO Loan.

Similar to the existing FILO loan, the borrowing base for the new FILO Loan is determined based on a percentage of eligible inventory, receivables and intellectual property.  However, the new FILO Loan will provide the Company additional borrowing capacity.  Interest rates under the new FILO Loan will be higher than the existing FILO loan by approximately 250 to 300 basis points. The new FILO Loan will mature May 24, 2023 but may be automatically extended with any extension of the revolving facility under the Credit Agreement, but no later than March 16, 2026 without approval from the FILO lender.

 

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