Long-Term Debt

9 Months Ended

Oct. 31, 2021

Debt Instruments [Abstract]

Long-Term Debt

Long-Term Debt

Long-term debt and the current period interest rates were as follows:

(in thousands, except percentages)	October 31, 2021			January 31, 2021
Revolving loans	$	177,000		$	181,000
Debt issuance costs	(1,444)			(1,805)
Total long-term debt, net of debt issuance costs	$	175,556		$	179,195
Effective interest rate (1)	1.88		%	1.88		%

(1) The revolving loans bear interest at a variable rate based on LIBOR or a Base Rate, at the Company’s option, plus an applicable margin that varies based on the Company’s consolidated leverage ratio. In the first quarter of fiscal year 2021, the Company entered into an interest rate swap agreement that fixed the interest on the first $150.0 million of debt outstanding under the revolving loans at 1.9775%. As of October 31, 2021, the effective interest rate is a weighted-average rate that represents (a) interest on the first $150.0 million of the debt outstanding at a fixed LIBOR rate of 0.7275% plus a margin of 1.25% (total fixed rate of 1.9775%), and (b) interest on the remainder of the debt outstanding at a variable rate based on the one-month LIBOR rate, which was 0.09% as of October 31, 2021, plus a margin of 1.25% (total variable rate of 1.34%). As of January 31, 2021, the effective interest rate is a weighted-average rate that represents (a) interest on the first $150.0 million of the debt outstanding at a fixed LIBOR rate of 0.7275% plus a margin of 1.25% (total fixed rate of 1.9775%), and (b) interest on the remainder of the debt outstanding at a variable rate based on the one-month LIBOR rate, which was 0.14% as of January 31, 2021, plus a margin of 1.25% (total variable rate of 1.39%).

On November 7, 2019, the Company, with certain of its domestic subsidiaries as guarantors, entered into an amended and restated credit agreement with the lenders party thereto and HSBC Bank USA, National Association, as administrative agent, swing line lender and letter of credit issuer. The borrowing capacity of the revolving loans under the senior secured first lien credit facility (the "Credit Facility") is $600.0 million and matures on November 7, 2024. As of October 31, 2021, the Company had $177.0 million outstanding under its Credit Facility and $423.0 million of undrawn borrowing capacity, and the Company was in compliance with the covenants required under the Credit Facility.

On August 11, 2021, the Company entered into an amendment to the Credit Agreement in order to, among other things, (i) provide for contractual fallback language for LIBOR replacement to reflect the Alternative Reference Rates Committee hardwired approach and (ii) incorporate certain provisions that clarify the rights of the administrative agent to recover from lenders or other secured parties erroneous payments made to such lenders or secured parties.

Interest expense was comprised of the following components for the periods presented:

	Three Months Ended				Nine Months Ended
(in thousands)	October 31, 2021		October 25, 2020		October 31, 2021		October 25, 2020
Contractual interest (1)	$	1,113	$	888	$	3,256	$	3,457
Amortization of debt discount and issuance costs	120		120		361		362
Total interest expense	$	1,233	$	1,008	$	3,617	$	3,819

(1) Contractual interest represents the interest on the Company's outstanding debt after giving effect to the interest rate swap agreement.

As of October 31, 2021, there were no amounts outstanding under the letters of credit, swing line loans and alternative currency sub-facilities.