Long-Term Debt and Credit Lines

9 Months Ended

Nov. 02, 2019

The table below presents long-term debt, exclusive of current installments, as of November 2, 2019, February 2, 2019 and November 3, 2018. All amounts are net of unamortized debt discounts.


In thousands	November 2, 2019		February 2, 2019		November 3, 2018
General corporate debt:
2.50% senior unsecured notes, maturing May 15, 2023 (effective interest rate of 2.51% after reduction of unamortized debt discount of $156 at November 2, 2019, $189 at February 2, 2019 and $200 at November 3, 2018)	$	499,844	$	499,811	$	499,800
2.75% senior unsecured notes, maturing June 15, 2021 (effective interest rate of 2.76% after reduction of unamortized debt discount of $119 at November 2, 2019, $174 at February 2, 2019 and $194 at November 3, 2018)	749,881		749,826		749,806
2.25% senior unsecured notes, maturing September 15, 2026 (effective interest rate of 2.32% after reduction of unamortized debt discount of $5,097 at November 2, 2019, $5,657 at February 2, 2019 and $5,844 at November 3, 2018)	994,903		994,343		994,156
Debt issuance cost	(8,755)		(10,364)		(10,898)
Long-term debt	$	2,235,873	$	2,233,616	$	2,232,864

TJX has two $500 million revolving credit facilities, one which matures in March 2022 and one which matures in May 2024. During fiscal 2020, the Company amended the two agreements to reflect the impact of implementing the new lease accounting standard under ASC 842 related to the definition of rental costs used within the debt covenant calculation. For additional information about the implementation of ASC 842, see Leases within Note A— Basis of Presentation and Summary of Significant Accounting Policies of Notes to Consolidated Financial Statements. In addition, the maturity date for one of the revolving credit facilities was extended from March 2020 to May 2024.

The terms and covenants under the revolving credit facilities require quarterly payments of 6.0 basis points per annum on the committed amounts for both agreements. This rate is based on the credit ratings of TJX’s long-term debt and will vary with specified changes in the credit ratings. These agreements have no compensating balance requirements and have various covenants. Each of these facilities require TJX to maintain a ratio of funded debt to earnings before interest, taxes, depreciation and amortization and rentals (EBITDAR) of not more than 3.25 to 1.00 on a rolling four-quarter basis. TJX was in compliance with all covenants related to its credit facilities at the end of all periods presented. As of November 2, 2019, February 2, 2019 and November 3, 2018, and during the quarters and year then ended, there were no amounts outstanding under these facilities.

As of November 2, 2019, February 2, 2019 and November 3, 2018, TJX Canada had two uncommitted credit lines, a C$10 million facility for operating expenses and a C$10 million letter of credit facility. As of November 2, 2019, February 2, 2019 and November 3, 2018, and during the quarters and year then ended, there were no amounts outstanding on the Canadian credit line for operating expenses. As of November 2, 2019, February 2, 2019 and November 3, 2018, our European business at TJX International had one uncommitted credit line of £5 million. As of November 2, 2019, February 2, 2019 and November 3, 2018, and during the quarters and year then ended, there were no amounts outstanding on the European credit line.