Debt

12 Months Ended

Jan. 30, 2022

Note 5: Debt

Long-term debt consists of the following:


	January 30, 2022			January 31, 2021
Credit Facility—revolver	$	—		$	60,000
Senior secured notes		440,000			550,000

Total debt outstanding		440,000			610,000
Less debt issuance costs		(8,605	)		(13,612	)

Long-term debt, net	$	431,395		$	596,388

On October 27, 2020, the Company issued

$550,000 aggregate principal amount of 7.625

% senior secured notes (the “Notes”)

. Interest on the Notes accrues from October 27, 2020, payable in arrears on November 1 and May 1 of each year, commencing on May 1, 2021. The Notes mature on November 1, 2025, unless earlier redeemed, and are subject to the terms and conditions set forth in the related indenture. Prior to November 1, 2022, but not more than once during any twelve-month period commencing with the issue date of the Notes, the Company may redeem up to 10% of the original principal amount of the Notes at a redemption price of 103% of the principal amount, plus accrued and unpaid interest, at the redemption date. After November 1, 2022, the Company may redeem the Notes, in whole or in part, at certain specified redemption prices, plus accrued and unpaid interest, at the redemption date. The Notes were issued by D&B Inc and are unconditionally guaranteed by D&B Holdings and certain of D&B Inc’s existing and future wholly owned material domestic subsidiaries, which is substantially the same as the guarantors of the Company’s existing credit facility.

The first amendment to the existing credit facility, effective April 14, 2020, increased the interest rate spread on variable rate debt to 2.00% plus a LIBOR floor of 1.00%. Concurrent and subject to the issuance of the Notes, the Company executed a second amendment, which included relief from testing compliance with certain financial covenants until the last day of the fiscal quarter ending on May 1, 2022. During the financial covenant suspension period the Company is required to maintain a minimum liquidity (primarily availability under the credit facility) of

$150,000

. During the fourth quarter of fiscal 2021, the Company ended this financial covenant suspension period. The second amendment extended the maturity of the

$500,000

revolving portion of the facility from August 17, 2022, to August 17, 2024, increased the interest rate spread t

o 4.00

%, and instituted a

1.00

% utilization fee due at maturity. After the first quarter of fiscal 2022, when the financial covenant suspension increased pricing period ends, the interest rate spread ranges fro

m 1.25% to 3.00

% and the utilization fee will cease.

The second amendment also terminated the term loan portion of the credit facility, triggering payment of

$1,900

of lender debt costs, and the Company recorded a loss of

$904

related to the unamortized debt costs associated with the term portion of the credit facility. The Company used the proceeds of the Notes offering, along with cash on hand, to repay the

$255,000

principal balance of the term loan facility,

$463,000

of borrowings under the revolving credit facility, and related accrued interest. The Company incurred debt costs of $18,300 associated with the issuance of the Notes and the second amendment to the credit facility, which are being amortized over the respective terms.

During fiscal 2021, the Company redeemed a total of $110,000 outstanding principal amount of the Notes in two separate transactions. In connection with the early redemption of the Notes, the Company paid prepayment premiums of $3,300, plus accrued and unpaid interest to the date of redemptions, pursuant to the terms of the indenture governing the Notes. Additionally, the early redemptions of the Notes resulted in a loss on extinguishment of approximately $2,300 related to a proportionate amount of unamortized issuance costs.

For fiscal 2021 and fiscal 2020, the Company’s weighted average interest rate on outstanding borrowings wa

s 10.34% and 5.40

%, respectively. The rate has increased due to the issuance of the Notes and the second amendment to the credit facility. As of January 30, 2022, we had letters of credit outstanding of

$7,505 and an unused commitment balance of $492,495

under the revolving credit facility. Our credit facility and Notes contain restrictive covenants that, among other things, place certain limitations on our ability to incur additional indebtedness, make loans or advances to subsidiaries and other entities, pay dividends, acquire other businesses or sell assets. As of January 30, 2022, the Company was in compliance with the financial covenants of our credit facility and all the restrictive covenants of the Notes and credit facility.

Future debt obligations

— Below is our future debt principal payment obligations as of January 30, 2022 by fiscal year:



2025	$	440,000

Total future payments	$	440,000

Interest expense, net

— The following tables set forth our recorded interest expense, net:


	January 30, 2022			January 31, 2021			February 2, 2020
Interest expense on debt	$	43,463		$	29,124		$	20,277
Interest associated with swap agreements		7,547			6,453			969
Amortization of issuance cost		4,244			2,184			792
Interest income		—			(22	)		(119	)
Capitalized interest		(1,344	)		(849	)		(982	)

Total interest expense, net	$	53,910		$	36,890		$	20,937