XML 28 R18.htm IDEA: XBRL DOCUMENT
v3.23.2

Long-Term Debt, Net | 6 Months Ended
--- | ---
Jul. 29, 2023
Debt Disclosure [Abstract] |
Long-Term Debt, Net | 8. Long-Term Debt, Net Our long-term debt consisted of the following at July 29, 2023, January 28, 2023, and July 30, 2022:
(In thousands) |  | July 29, 2023 |  |  | January 28, 2023 |  |  | July 30, 2022 |
2025 Notes principal |  | $ | — |  |  | $ | 8,791 |  |  | $ | 69,601 |
Less: unamortized discount |  |  | — |  |  |  | 105 |  |  |  | 779 |
2025 Notes, net |  | $ | — |  |  | $ | 8,686 |  |  | $ | 68,822 |
Credit Facility borrowings |  | $ | 3,000 |  |  | $ | — |  |  | $ | 307,700 |
2025 Notes In April 2020, the Company issued $415 million aggregate principal amount of 2025 Notes in a private placement to qualified institutional buyers in reliance on Rule 144A under the Securities Act. The 2025 Notes had a stated interest rate of 3.75%, payable semi-annually. The Company used the net proceeds from the issuance for general corporate purposes. The Company redeemed all of the remaining 2025 Notes during the 13 weeks ended April 29, 2023. See "-Note Exchanges" and "-Early Redemption" below. The Company did not have the right to redeem the 2025 Notes prior to April 17, 2023. On or after April 17, 2023 and prior to the fortieth scheduled trading day immediately preceding the maturity date, the Company could redeem all or any portion of the 2025 Notes, at its option, for cash, if the last reported sale price of our common stock had been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period. Note Exchanges In June and December 2022, the Company entered into separate privately negotiated exchange agreements with certain holders of the 2025 Notes, to exchange $403.2 million in aggregate principal amount of the 2025 Notes for a combination of cash and shares of the Company's common stock, plus payment of accrued and unpaid interest (together, the "Note Exchanges"). In June 2022, the Company exchanged $342.4 million in aggregate principal amount of the 2025 Notes. The Company paid cash of $136.1 million to redeem a principal amount of the 2025 Notes with a carrying value of $339.2 million and issued approximately 34.7 million shares of the Company's common stock. In connection with these transactions, the Company recognized a pre-tax inducement charge of approximately $55.7 million during the 13 weeks ended July 30, 2022, which was recorded within debt-related charges on the Consolidated Statements of Operations. In December 2022, the Company exchanged $60.8 million in aggregate principal amount of the 2025 Notes for shares of the Company's common stock, plus payment of accrued and unpaid interest. The Company issued approximately 7.6 million shares of the Company's common stock with a carrying value of $60.4 million. In connection with these transactions, the Company recognized a pre-tax inducement charge of approximately $4.7 million during the 13 weeks ended January 28, 2023, which was recorded within debt-related charges on the Consolidated Statements of Operations. Early Redemption On February 10, 2023, the Company issued a notice of optional redemption for all of its remaining outstanding 2025 Notes, notifying holders that, among other things, it had elected to exercise its right to redeem any and all of the outstanding 2025 Notes on April 17, 2023 (the "Early Redemption"). Subsequent to this notice, and prior to April 17, 2023, the 2025 Note holders redeemed a total of $8.8 million aggregate principal amount for a combined 1.1 million shares of the Company's common stock. Following the Note Exchanges and Early Redemption, the aggregate principal amount of the 2025 Notes had been fully redeemed. Interest expense for the 2025 Notes was:
|  | 13 Weeks Ended |  |  | 26 Weeks Ended |
(In thousands) |  | July 29, 2023 |  |  | July 30, 2022 |  |  | July 29, 2023 |  |  | July 30, 2022 |
Accrued interest for interest payments |  | $ | — |  |  | $ | 2,008 |  |  | $ | 70 |  |  | $ | 5,914 |
Amortization of discount |  |  | — |  |  |  | 255 |  |  |  | 10 |  |  |  | 782 |
Total interest expense |  | $ | — |  |  | $ | 2,263 |  |  | $ | 80 |  |  | $ | 6,696 |
Refer to Note 2 and Note 5 to the Consolidated Financial Statements for additional information regarding the impact of the adoption of ASU 2020-06. Revolving Credit Facility In June 2022, the Company entered into an amended and restated Credit Agreement. The Credit Agreement provides senior secured asset-based revolving credit for loans and letters of credit up to $700 million, subject to customary borrowing base limitations. The Credit Facility expires on June 24, 2027. Before amendment and restatement, the Company's previous credit agreement provided senior secured asset-based revolving credit for loans and letters of credit up to $400 million and was scheduled to expire on January 30, 2024. All obligations under the Credit Facility are unconditionally guaranteed by certain subsidiaries. The obligations under the Credit Agreement are secured by certain assets of the Company and certain subsidiaries. As of July 29, 2023, the Company was in compliance with the terms of the Credit Agreement and had $3.0 million in outstanding borrowings and $7.7 million outstanding in stand-by letters of credit. As of July 30, 2022, the Company had $307.7 million in outstanding borrowings under the Credit Agreement. Borrowings under the Credit Facility accrue interest at the election of the Company at an adjusted secured overnight financing rate ("SOFR") rate of SOFR plus 0.10% plus an applicable margin (ranging from 1.125% to 1.375%) or an alternate base rate plus an applicable margin (ranging from 0.125% to 0.375%), with each such applicable margin being based on average borrowing availability under the Credit Facility. Interest is payable quarterly and at the end of each applicable interest period. The weighted average interest rate for borrowings during the 13 and 26 weeks ended July 29, 2023 was 6.2% and 6.0%, respectively. The total interest expense related to the Credit Facility borrowings for the 13 and 26 weeks ended July 29, 2023 was $0.5 million and $1.1 million respectively. The total interest expense related to the Credit Facility for both the 13 and 26 weeks ended July 30, 2022 was $1.0 million.

X
- References No definition available. + Details
Name: | us-gaap_DebtDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for long-term debt. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 470 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//470/tableOfContent + Details
Name: | us-gaap_LongTermDebtTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration