Debt

12 Months Ended

Feb. 01, 2020

Debt Disclosure [Abstract]

Debt

DEBT

In October 2018, we entered into amended agreements with Bank of America, N.A. and Regions Bank providing for an aggregate amount of credit available to us under each line of credit of $50.0 million for the purpose of financing a portion of the cash purchase price payable in the acquisition of City Gear.

The terms of the Bank of America facility allow for borrowings up to $50.0 million with an interest rate agreed upon between the lender and us at the time a loan is made.  The terms of the Regions Bank facility allow for borrowings up to $50.0 million with an interest rate at one month LIBOR plus 1.5%.  Both facilities are unsecured, due on demand and expire in October 2021.  Under the provisions of both facilities, we do not pay commitment fees.  However, both are subject to negative pledge agreements that, among other things, restrict liens or transfers of assets including inventory, tangible or intangible personal property and land and land improvements.

At February 1, 2020, we had two unsecured credit facilities that allow borrowings up to $50.0 million each, and which expire in October 2021.  There were 331 days during the 52 weeks ended February 1, 2020, where we incurred borrowings against our credit facilities for an average and maximum borrowing of $21.5 million and $38.0 million, respectively, and an average interest rate of 3.73%. At February 1, 2020, a total of $100.0 million was available to us from these facilities.

There were 95 days during the 52 weeks ended February 2, 2019, where we incurred borrowings against our credit facilities for an average and maximum borrowing of $45.4 million and $75.0 million, respectively, and an average interest rate of 3.70%. 

Subsequent to February 1, 2020, we incurred borrowings against our credit facilities of $50.0 million. However, on April 16, 2020, we entered into the Second Amended and Restated Note with Regions Bank (Amended Credit Facility) that provides for an aggregate amount of credit available to us of $75.0 million. The Amended Credit Facility supersedes the Regions Bank credit agreement dated October 2018, terminates the Bank of America credit agreement dated October 2018, matures on April 19, 2021 and is secured by all assets of the company with the exception of real property. Simultaneous to the execution of the Amended Credit Facility, the $50.0 million outstanding under our previous unsecured credit agreements with Regions Bank and Bank of America, were paid in full, the Bank of America, N.A. credit agreement dated October 2018 was terminated and we incurred borrowings against the Amended Credit Facility of $50.0 million. For additional information, see Note 14 "Subsequent Events."