Indebtedness

6 Months Ended

Jul. 31, 2019

Debt Disclosure [Abstract]

Indebtedness

Indebtedness

On September 30, 2015, the Company entered into a credit facility (the "Prior Credit Agreement") that provided for a secured revolving credit facility in the aggregate principal amount of $100.0 million for a term of five years. No amounts were drawn under the Prior Credit Agreement as of July 31, 2019.

Borrowings under the Prior Credit Agreement bore interest equal to, at the Company's option, a) an adjusted LIBOR rate or b) a customary base rate, in each case with an applicable spread determined based on the Company's leverage ratio as of the most recent fiscal quarter. The applicable spread for borrowing under the Prior Credit Agreement ranged from 1.50% to 2.00% with respect to adjusted LIBOR rate borrowings and 0.50% to 1.00% with respect to customary base rate borrowings. The Company paid a commitment fee of 0.20% on the daily amount of the unused commitments under the Prior Credit Agreement in arrears at the end of each fiscal quarter.

The Company's material subsidiaries were required to guarantee the obligations of the Company under the Prior Credit Agreement. The obligations of the Company and the guarantors under the Prior Credit Agreement and the guarantees were secured by substantially all assets of the Company and the guarantors, subject to customary exclusions and exceptions.

Note 7. Indebtedness (continued)

The Prior Credit Agreement required the Company to maintain a total leverage ratio of not more than 3.00 to 1.00 as of the end of each fiscal quarter and a minimum interest coverage ratio of at least 3.00 to 1.00 as of the end of each fiscal quarter. In addition, the Prior Credit Agreement included customary representations and warranties, affirmative and negative covenants, and events of default. The restrictive covenants included customary restrictions on the Company's ability to incur additional indebtedness; make investments, loans or advances; grant or incur liens on assets; engage in mergers, consolidations, liquidations or dissolutions; engage in transactions with affiliates; and make dividend payments. The Company was in compliance with these covenants as of July 31, 2019.

In connection with the closing of the Merger on August 30, 2019, the Company entered into a new $1.6 billion credit agreement (the "Credit Agreement"), which replaced the Prior Credit Agreement, consisting of (i) a five-year senior secured term loan A facility in the aggregate principal amount of $1.25 billion, the net proceeds of which were used by the Company to finance the Merger and related transactions, and (ii) a five-year senior secured revolving credit facility in an aggregate principal amount of up to $350 million. For a description of the terms of the Credit Agreement, refer to Note 11—Subsequent events of the Notes to condensed consolidated financial statements.