Revolving Line of Credit

3 Months Ended

Apr. 29, 2017

Revolving Line of Credit

Revolving Line of Credit

4.    Revolving Line of Credit

Interest on borrowings under our $215.0 million senior secured asset-based revolving credit facility (“ABL Facility”) is computed based on our average daily availability, at our option, of: (x) the higher of (i) the Federal Funds Rate plus 1/2 of 1.00%, (ii) the bank's prime rate and (iii) the London Interbank Offered Rate (“LIBOR”) plus 1.00%,  plus in each case, an applicable margin of 0.25% to 0.75% or (y) the bank's LIBOR rate plus an applicable margin of 1.25% to 1.75%. The effective interest rate was approximately 2.30% and 2.00% during the thirteen weeks ended April 29, 2017 and April 30, 2016, respectively.

In June 2016, we amended the agreement governing the ABL Facility to exercise the $75.0 million accordion feature which increased the aggregate revolving commitments from $140.0 million to $215.0 million and increased the sublimit for the issuance of letters of credit from $10.0 million to $25.0 million. The other terms of the ABL Facility were not changed by the amendment.

As of April 29, 2017, approximately $126.8 million was outstanding under the ABL Facility, approximately $3.8 million in face amount of letters of credit had been issued and we had availability of approximately $84.4 million. As of April 29, 2017, we were in compliance with all covenants prescribed in the ABL Facility.