Loans, overdrafts and long-term debt

6 Months Ended

Aug. 03, 2019



(in millions)	August 3, 2019			February 2, 2019			August 4, 2018
Debt:
Senior unsecured notes due 2024, net of unamortized discount	$	399.1		$	399.0		$	399.0
Senior unsecured term loan	277.1			294.9			312.8
Revolving credit facility	—			—			71.0
Bank overdrafts	11.0			40.1			6.1
Total debt	$	687.2		$	734.0		$	788.9
Less: Current portion of loans and overdrafts	(54.2		)	(78.8		)	(111.4		)
Less: Unamortized capitalized debt issuance fees	(4.8		)	(5.6		)	(6.4		)
Total long-term debt	$	628.2		$	649.6		$	671.1

Revolving credit facility and term loan (the “Credit Facility”)

The Company’s Credit Facility contains a $700 million senior unsecured multi-currency multi-year revolving credit facility and a $357.5 million senior unsecured term loan facility. The maturity date for the Credit Facility, including both individual facilities disclosed above, is July 2021.

Deferred financing fees associated with the revolving credit facility as of August 3, 2019 total $2.6 million with the unamortized balance recorded as an asset within the condensed consolidated balance sheets. Accumulated amortization related to these capitalized fees as of August 3, 2019 was $1.8 million (February 2, 2019 and August 4, 2018: $1.6 million and $1.4 million, respectively). Amortization relating to these fees of $0.1 million and $0.2 million was recorded as interest expense in the condensed consolidated statement of operations for the 13 and 26 weeks ended August 3, 2019 ($0.1 million and $0.2 million for the 13 and 26 weeks ended August 4, 2018). As of August 3, 2019, February 2, 2019 and August 4, 2018, the Company had stand-by letters of credit outstanding of $14.5 million, $14.6 million and $14.6 million, respectively, that reduce remaining borrowing availability. The revolving credit facility was not utilized during the 13 and 26 weeks ended August 3, 2019. The revolving credit facility had a weighted average interest rate of 3.48% during the 26 weeks ended August 4, 2018.

Deferred financing fees associated with the term loan facility as of August 3, 2019 total $6.2 million with the unamortized balance recorded as a direct deduction from the outstanding liability within the condensed consolidated balance sheets. Accumulated amortization related to these capitalized fees as of August 3, 2019 was $4.8 million (February 2, 2019 and August 4, 2018: $4.3 million and $3.9 million, respectively). Amortization relating to these fees of $0.1 million and $0.5 million was recorded as interest expense in the condensed consolidated statement of operations for the 13 and 26 weeks ended August 3, 2019 ($0.2 million and $0.4 million for the 13 and 26 weeks ended August 4, 2018). Excluding the impact of the interest rate swap designated as a cash flow hedge discussed in Note 15, the term loan had a weighted average interest rate of 4.43% and 3.32% during the 26 weeks ended August 3, 2019 and August 4, 2018, respectively.

Senior unsecured notes due 2024

On May 19, 2014, Signet UK Finance plc (“Signet UK Finance”), a wholly owned subsidiary of the Company, issued $400 million aggregate principal amount of its 4.70% senior unsecured notes due in 2024 (the “Notes”). The Notes were issued under an effective registration statement previously filed with the SEC. The Notes are jointly and severally guaranteed, on a full and unconditional basis, by the Company and by certain of the Company’s wholly owned subsidiaries (such subsidiaries, the “Guarantors”). See Note 21 for additional information.

Deferred financing fees relating to the senior unsecured notes total $7.0 million. Accumulated amortization related to these capitalized fees as of August 3, 2019 was $3.6 million (February 2, 2019 and August 4, 2018: $3.3 million and $2.9 million, respectively). The remaining unamortized capitalized fees are recorded as a direct deduction from the outstanding liability within the condensed consolidated balance sheets. Amortization relating to these fees of $0.2 million and $0.3 million was recorded as interest expense in the condensed consolidated statement of operations for the 13 and 26 weeks ended August 3, 2019, respectively ($0.2 million and $0.3 million for the 13 and 26 weeks ended August 4, 2018 respectively).

Other

As of August 3, 2019, February 2, 2019 and August 4, 2018, the Company was in compliance with all debt covenants.

The Company has announced that it expects to enter into new fully-committed 5-year $1.6 billion senior asset-based credit facilities to refinance all outstanding amounts under its existing senior credit facilities that mature in July 2021, to finance a tender offer for its outstanding senior notes due in 2024, to pay related fees and expenses, and for general corporate purposes. The new credit facilities are subject to final documentation and customary closing conditions.