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Debt | 3 Months Ended
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May 05, 2018
Debt Disclosure [Abstract] |
Debt | 3. Debt Credit Agreement with Bank of America, N.A. On October 30, 2014, the Company executed the Second Amendment to the Sixth Amended and Restated Credit Agreement with Bank of America, N.A, effective October 29, 2014, (as amended, the “Credit Facility”). The maturity date of this Credit Facility is October 29, 2019. Subsequent to the end of the first quarter of fiscal 2018, on May 24, 2018 this Credit Facility with Bank of America, N.A. was amended pursuant to the Seventh Amended and Restated Credit Agreement (“New Credit Facility”). See Note 8, Subsequent Events, for a full description of the New Credit Facility. The Credit Facility provided for maximum committed borrowings of $125 million. The Credit Facility included, pursuant to an accordion feature, the ability to increase the Credit Facility by an additional $50 million upon the request of the Company and the agreement of the lender(s) participating in the increase. The Credit Facility included a sublimit of $20 million for commercial and standby letters of credit and a sublimit of up to $15 million for swingline loans. The Company’s ability to borrow under the Credit Facility was determined using an availability formula based on eligible assets. Through the end of the first quarter of fiscal 2018, obligations under the Credit Facility were secured by a lien on substantially all of its assets, excluding (i) a first priority lien held by the lenders of the Term Loan Facility on certain equipment of the Company described below and (ii) intellectual property. At May 5, 2018, the Company had outstanding borrowings under the Credit Facility of $59.1 million, before unamortized debt issuance costs of $0.2 million. Outstanding standby letters of credit were $3.6 million and outstanding documentary letters of credit were $1.5 million. Unused excess availability at May 5, 2018 was $32.7 million. Average monthly borrowings outstanding under the Credit Facility during the first three months of fiscal 2018 were $60.8 million, resulting in an average unused excess availability of approximately $30.4 million. The Company’s ability to borrow under the Credit Facility was determined using an availability formula based on eligible assets, with increased advance rates based on seasonality. Pursuant to the terms of the Credit Facility, if the Company’s excess availability under the Credit Facility failed to be equal to or greater than the greater of (i) 10% of the Loan Cap (defined in the Credit Facility as the lesser of the revolving credit commitments at such time or the borrowing base at the relevant measurement time) and (ii) $7.5 million, the Company would have been required to maintain a minimum consolidated fixed charge coverage ratio of 1.0:1.0 in order to pursue certain transactions, including but not limited to, stock repurchases, payment of dividends and business acquisitions. Borrowings made pursuant to the Credit Facility bear interest at a rate equal to the base rate (determined as the highest of (a) Bank of America N.A.’s prime rate, (b) the Federal Funds rate plus 0.50% or (c) the annual ICE-LIBOR rate (“LIBOR”) for the respective interest period) plus a varying percentage, based on the Company’s borrowing base, of 0.50%-0.75% for prime-based borrowings and 1.50%-1.75% for LIBOR-based borrowings. The Company was also subject to an unused line fee of 0.25%. At May 5, 2018, the Company’s prime-based interest rate was 5.25%. At May 5, 2018, the Company had approximately $56.0 million of its outstanding borrowings in LIBOR-based contracts with an interest rate of 3.25%. The LIBOR-based contracts expired on May 8, 2018. When a LIBOR-based borrowing expires, the borrowings reverted back to prime-based borrowings unless the Company entered into a new LIBOR-based borrowing arrangement. The fair value of the amount outstanding under the Credit Facility at May 5, 2018 approximated the carrying value. Long-Term Debt Components of long-term debt are as follows:
(in thousands) |  | May 5, 2018 |  |  | February 3, 2018 |
Equipment financing notes |  | $ | 71 |  |  | $ | 501 |
Term loan, due 2019 |  |  | 11,500 |  |  |  | 11,750 |
Less: unamortized debt issuance costs |  |  | (162 | ) |  |  | (190 | )
Total long-term debt |  |  | 11,409 |  |  |  | 12,061 |
Less: current portion of long-term debt |  |  | 963 |  |  |  | 1,392 |
Long-term debt, net of current portion |  | $ | 10,446 |  |  | $ | 10,669 |
Equipment Financing Loans Pursuant to a Master Loan and Security Agreement with Banc of America Leasing & Capital, LLC, dated July 20, 2007 and amended on September 30, 2013 (the “Master Agreement”), the Company entered into twelve equipment security notes between September 2013 and June 2014 (in aggregate, the “Notes”), whereby the Company borrowed an aggregate of $26.4 million. The Notes are for a term of 48 months and accrue interest at fixed rates ranging from 3.07% to 3.50%. Principal and interest are paid monthly, in arrears. The Company repaid, in full, the remaining outstanding balance on the Notes of $71,000 subsequent to the end of the first quarter of fiscal 2018. The Notes were secured by a security interest in all of the Company’s rights, title and interest in and to certain equipment. Term Loan On October 30, 2014, the Company entered into a term loan agreement with respect to a new $15 million senior secured term loan facility with Wells Fargo Bank, National Association as administrative and collateral agent (the “Term Loan Facility”). The effective date of the Term Loan Facility is October 29, 2014 (the “Effective Date”). The proceeds from the Term Loan Facility were used to repay borrowings under the Credit Facility. In connection with the New Credit Facility, discussed above, subsequent to the end of the first quarter of fiscal 2018, on May 24, 2018, this Term Loan Facility was repaid in full, without penalty. See Note 8, Subsequent Events, for additional information regarding the New Credit Facility. Interest on the Term Loan Facility was at a rate per annum equal to the greater of (a) 1.00% and (b) the one month LIBOR rate, plus 6.50%. Interest payments were payable on the first business day of each calendar month, and increased by 2% following the occurrence and during the continuance of an “event of default,” as defined in the Term Loan Facility. The Term Loan Facility provided for quarterly principal payments on the first business day of each calendar quarter, which commenced the first business day of January 2015, in an aggregate principal amount equal to $250,000, subject to adjustment, with the balance payable on the termination date, which was October 29, 2019. The Term Loan Facility included usual and customary mandatory prepayment provisions for transactions of this type that were triggered by the occurrence of certain events, and through the end of the first quarter of fiscal 2018, was secured by a first priority lien on certain equipment of the Company, and a second priority lien on substantially all of the remaining assets of the Company, excluding intellectual property.

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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 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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