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Note 12 - Debt

12 Months Ended

Jan. 31, 2020

Notes to Financial Statements

Debt Disclosure [Text Block]

Note

12

- Debt

On

January 25, 2019,

we amended and increased our existing

$150.0

million senior secured revolving credit facility. The amended facility is now a

$350.0

million revolving operating credit facility to be available for general corporate purposes, including the financing of ongoing working capital needs and acquisitions. With the approval of the lenders, the credit facility can be expanded to a total of

$500.0

million. The credit facility has a

five

-year maturity with

no

fixed repayment dates prior to the end of the

five

-year term ending

January 2024.

Borrowings under the credit facility are secured by a

first

charge over substantially all of Descartes’ assets. Depending on the type of advance, interest rates under the revolving operating portion of the credit facility are based on the Canada or US prime rate, Bankers’ Acceptance (BA) or London Interbank Offered Rate (LIBOR) plus an additional

0

to

250

basis points based on the ratio of net debt to adjusted earnings before interest, taxes, depreciation and amortization, as defined in the credit agreement. A standby fee of between

20

to

40

basis points will be charged on all undrawn amounts. The credit facility contains certain customary representations, warranties and guarantees, and covenants.

Long-term debt is comprised of the following:

			January 31,				January 31,
			2020				2019
Credit facility			–				25,464
Available for use			350,000				324,536

We were in compliance with the covenants of the credit facility as of

January 31, 2020.

As at

January 31, 2020,

we had outstanding letters of credit of approximately

$0.2

million (

$0.2

million as at

January 31, 2019),

which were

not

related to our credit facility.

X

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-URI http://asc.fasb.org/topic&trid=2208564

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X

- References

No definition available.

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