Debt

6 Months Ended

Aug. 01, 2020

Debt Disclosure [Abstract]

Debt

DEBT

During the six months ended August 1, 2020, our Credit Facility provided a revolving line of credit with sub-limits for the issuance of up to $50 million in letters of credit, swing loan advances of up to $15 million, and the issuance of up to $75 million in foreign currency revolving loans and letters of credit. On April 30, 2020, the Credit Facility was amended, which resulted in various changes, including:

•Provided for a lien on all of the Company's assets;

•Redefined the components for calculating the leverage ratio and fixed charge coverage ratio to adjust for certain temporary impacts due to COVID-19;

•Changed the maximum leverage ratio covenant to 4.00:1 as of August 1, 2020;

•Changed the minimum fixed charge coverage ratio to 1.05:1 as of August 1, 2020; and

•Restricted the Company from paying dividends and making share repurchases.

Loans issued under the revolving line of credit bore interest, at our option, at a base rate or an alternate base rate as defined in the Credit Facility plus a margin based on our leverage ratio, with an interest rate of 3.8% as of August 1, 2020. Interest on letters of credit issued under the Credit Facility was variable based on our leverage ratio and the type of letters of credit, with an interest rate of 2.8% as of August 1, 2020. Commitment fees were based on the average unused portion of the Credit Facility at a variable rate based on our leverage ratio. As of August 1, 2020, the Credit Facility provided a revolving line of credit up to $400 million and we had $393.0 million outstanding under the Credit Facility and $5.0 million in letters of credit issued, resulting in $2.0 million available for borrowings. Interest expense related to the Credit Facility includes interest on borrowings and letters of credit, commitment fees and the amortization and write-off of debt issuance costs.