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Debt | 12 Months Ended
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Jan. 29, 2016
Debt Disclosure [Abstract] |
Debt | DEBT Debt Arrangements On April 4, 2014, Lands’ End entered into an ABL Facility, which provides for maximum borrowings of $175.0 million for Lands’ End, subject to a borrowing base, with a $30.0 million sub facility for the UK Borrower. The ABL Facility has a sub-limit of $70.0 million for domestic letters of credit and a sub-limit of $15.0 million for letters of credit for the UK Borrower. The ABL Facility is available for working capital and other general corporate purposes, and was undrawn at the Separation and at January 29, 2016, other than for letters of credit. Also on April 4, 2014, Lands’ End entered into a Term Loan Facility of $515.0 million, the proceeds of which were used to pay a dividend of $500.0 million to a subsidiary of Sears Holdings Corporation immediately prior to the Separation and to pay fees and expenses associated with the Debt facilities of approximately $11.4 million, with the remaining proceeds used for general corporate purposes. The fees were capitalized as debt issuance costs, and are included in Other assets on the Consolidated Balance Sheets and are being amortized as an adjustment to Interest expense over the remaining life of the Debt facilities. The Company's debt consisted of the following:
|  | January 29, 2016 |  | January 30, 2015
|  | Principal Amount |  | Interest Rate |  | Principal Amount |  | Interest Rate
Term Loan Facility, maturing April 4, 2021 |  | $ | 505,988 |  |  | 4.25 | % |  | $ | 511,138 |  |  | 4.25 | %
ABL Facility, maturing April 4, 2019 |  | — |  |  | — | % |  | — |  |  | — | %
|  | 505,988 |  |  |  |  | 511,138 |  |  |
Less: current maturities in Other current liabilities |  | 5,150 |  |  |  |  | 5,150 |  |  |
Long-term debt |  | $ | 500,838 |  |  |  |  | $ | 505,988 |  |  |
The following table summarizes the Company's borrowing availability under the ABL Facility:
|  | January 29, 2016 |  | January 30, 2015
ABL maximum borrowing |  | $ | 175,000 |  |  | $ | 175,000 |
Outstanding letters of credit |  | 24,311 |  |  | 15,541 |
Borrowing availability under ABL |  | $ | 150,689 |  |  | $ | 159,459 |
Interest; Fees The interest rates per annum applicable to the loans under the Debt facilities are based on a fluctuating rate of interest measured by reference to, at the borrowers’ election, either (i) an adjusted London inter-bank offered rate (“LIBOR”) plus a borrowing margin, or (ii) an alternative base rate plus a borrowing margin. The borrowing margin is fixed for the Term Loan Facility at 3.25% in the case of LIBOR loans and 2.25% in the case of base rate loans. For the Term Loan Facility, LIBOR is subject to a 1% interest rate floor. The borrowing margin for the ABL Facility is subject to adjustment based on the average excess availability under the ABL Facility for the preceding fiscal quarter, and will range from 1.50% to 2.00% in the case of LIBOR borrowings and will range from 0.50% to 1.00% in the case of base rate borrowings. Customary agency fees are payable in respect of both Debt facilities. The ABL Facility fees also include (i) commitment fees, based on a percentage ranging from approximately 0.25% to 0.375% of the daily unused portions of the ABL Facility, and (ii) customary letter of credit fees. Amortization and Prepayments The Term Loan Facility will amortize at a rate equal to 1% per annum, and is subject to mandatory prepayment in an amount equal to a percentage of the borrower’s excess cash flows (as defined in the Term Loan Facility) in each fiscal year, ranging from 0% to 50% depending on Lands’ End’s secured leverage ratio, and the proceeds from certain asset sales and casualty events. Based on Fiscal 2015 results, no mandatory prepayment is required in the first quarter of Fiscal 2016. The Company’s aggregate scheduled maturities of the Term Loan Facility as of January 29, 2016 are as follows:
(in thousands) |  |
Less than 1 year |  | $ | 5,150 |
1 - 2 years |  | 5,150 |
2 - 3 years |  | 5,150 |
3 - 4 years |  | 5,150 |
4 - 5 years |  | 5,150 |
Thereafter |  | 480,238 |
|  | $ | 505,988 |
Guarantees; Security All domestic obligations under the Debt facilities are unconditionally guaranteed by Lands’ End and, subject to certain exceptions, each of its existing and future direct and indirect domestic subsidiaries. In addition, the obligations of the UK Borrower under the ABL Facility are guaranteed by its existing and future direct and indirect subsidiaries organized in the United Kingdom. The ABL Facility is secured by a first priority security interest in certain working capital of the borrowers and guarantors consisting primarily of accounts receivable and inventory. The Term Loan Facility is secured by a second priority security interest in the same collateral, with certain exceptions. The Term Loan Facility also is secured by a first priority security interest in certain property and assets of the borrowers and guarantors, including certain fixed assets and stock of subsidiaries. The ABL Facility is secured by a second priority security interest in the same collateral. Representations and Warranties; Covenants Subject to specified exceptions, the Debt facilities contain various representations and warranties and restrictive covenants that, among other things, restrict the ability of Lands’ End and its subsidiaries to incur indebtedness (including guarantees), grant liens, make investments, make dividends or distributions with respect to capital stock, make prepayments on other indebtedness, engage in mergers or change the nature of their business. In addition, if excess availability under the ABL Facility falls below the greater of 10% of the loan cap amount or $15.0 million, Lands’ End will be required to comply with a minimum fixed charge coverage ratio of 1.0 to 1.0. The Debt facilities do not otherwise contain financial maintenance covenants. The Company was in compliance with all financial covenants related to the Debt facilities as of January 29, 2016. The Debt facilities contain certain affirmative covenants, including reporting requirements such as delivery of financial statements, certificates and notices of certain events, maintaining insurance, and providing additional guarantees and collateral in certain circumstances. Events of Default The Debt facilities include customary events of default including non-payment of principal, interest or fees, violation of covenants, inaccuracy of representations or warranties, cross defaults related to certain other material indebtedness, bankruptcy and insolvency events, invalidity or impairment of guarantees or security interests, and material judgments and change of control.

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- 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://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
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