Subsequent Event

6 Months Ended

Aug. 02, 2020

Subsequent Events [Abstract]

Subsequent Event

Subsequent Event

On August 24, 2020, we entered into a Credit Agreement with a consortium of financial institutions and lenders that provides for a five-year, senior secured revolving credit facility of $300 million (Credit Facility). Proceeds from the Credit Facility may be used for general corporate purposes and working capital.

The annual interest rates applicable to loans under the Credit Facility are, at our option, equal to either a base rate plus a margin ranging from 0.50% to 1.25% or LIBOR, subject to a floor of 0%, plus a margin ranging from 1.50% to 2.25%. In addition, we will incur a commitment fee on the unused portion of the commitments ranging from 0.25% to 0.40% per annum. The respective margins are based on the then-applicable Consolidated Leverage Ratio.

Loans under the Credit Facility are subject to certain restrictions and two financial ratios measured as of the last day of each fiscal quarter, commencing with the fiscal quarter ending January 31, 2021: a Consolidated Leverage Ratio not to exceed 4.5:1 and an Interest Coverage Ratio not to be less than 3:1.

We have not borrowed any funds under the Credit Facility.