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Debt
 3 Months Ended
May 04, 2024
Debt Disclosure [Abstract]  
Debt Debt
On February 28, 2023, we entered into an unsecured Credit Agreement (the "2023 Credit Facility") with Regions Bank, as administrative agent for the lenders, swingline lender and issuing bank. The 2023 Credit Facility matures on February 28, 2028. Terms and conditions include the following:
•aggregate principal amount of commitments of $160 million, which includes a $25 million sublimit for the issuance of standby letters of credit and $25 million sublimit for swingline loans;
•permits us to increase the aggregate principal amount of commitments by up to an additional $50 million, subject to certain terms and conditions;
•provides that borrowings bear interest at either (i) an annual rate equal to the BSBY Rate, plus an applicable margin ranging from 1.0% to 2.0% depending on specified leverage levels (the "Applicable Margin"), or (ii) at the Company's option, (x) a base rate as set forth in the 2023 Credit Facility plus the Applicable Margin or (y) the BSBY Rate plus the Applicable Margin; and
•provides for an annual commitment fee, dependent on the amount of debt outstanding, between 12.5 and 25 basis points of the unused portion of the 2023 Credit Facility.

On February 26, 2024, we secured an irrevocable standby letter of credit ("Letter of Credit") with Regions Bank in the amount of $0.6 million which effectively reduced the aggregate principal amount of commitments under the 2023 Credit Facility to $159.4 million.

Under the 2023 Credit Facility, we are subject to certain financial covenants, which include:
•advance limitation of 55% of the net book value of the Company's inventory;
•a Consolidated Lease-Adjusted Leverage Ratio comparing lease-adjusted funded debt (funded debt plus all lease
liabilities) to EBITDAR (as defined under the 2023 Credit Facility) with a maximum of 3.5x; and
•a Consolidated Fixed Coverage Charge Ratio comparing EBITDAR to fixed charges and certain current liabilities (as defined) with a minimum of 1.2x.
As of May 4, 2024, we were in compliance with these covenants.
Activity against our credit facilities during the periods indicated are as follows (dollars in millions):

May 4, 2024February 3, 2024April 29, 2023
13-Weeks Ended53-Weeks Ended13-Weeks Ended
Number of days borrowings incurred5635991
Average borrowings$13.3$85.8$96.7
Maximum borrowings$52.0$134.1$124.9
Average interest rate6.61%6.35%5.81%
At May 4, 2024, we had a balance of $7.5 million and a total of $151.9 million, net of the Letter of Credit, available to us under the 2023 Credit Facility. Pursuant to Section 5.1(b)(viii) of the Merger Agreement, net borrowings under the 2023 Credit Facility are limited to $110.0 million in the aggregate, leaving a total of $102.5 million available to us at May 4, 2024. (See Note 2, Merger Agreement.)