NOTE 7 - DEBT OBLIGATIONS

Debt obligations consist of the following (in thousands):



	February 1, 2014		February 2, 2013
Revolving Credit Facility	$	55,395	$	6,000
Finance lease obligations	5,584		6,329
Other financing	2,246		—
Total debt obligations	63,225		12,329
Less: Current portion of debt obligations	2,354		744
Long-term debt obligations	$	60,871	$	11,585

On June 30, 2011, the Company entered into an Amended and Restated Credit Agreement for a $250.0 million senior secured revolving credit facility (the "Revolving Credit Facility") that matures on June 30, 2016. The Revolving Credit Facility includes an uncommitted accordion feature to increase the size of the facility to $350.0 million. The Revolving Credit Facility is used by the Company to provide financing for working capital, capital expenditures and other general corporate purposes. Borrowings under the Revolving Credit Facility are limited to the availability under a borrowing base that is determined principally on eligible inventory as defined by the Revolving Credit Facility agreement. Inventory and cash and cash equivalents are pledged as collateral under the Revolving Credit Facility. The daily interest rates under the Revolving Credit Facility are determined by a prime rate or LIBOR, plus an applicable margin, as set forth in the Revolving Credit Facility agreement. On July 24, 2013, the Revolving Credit Facility agreement was amended to lower the applicable margin rates by 0.25%. In addition, the amendment fixed the commitment fee at 0.25% for the remaining term of the Revolving Credit Facility. During 2013, the weighted average interest rate on outstanding borrowings and the average daily borrowings under the Revolving Credit Facility were 1.82% and $57.6 million, respectively, as compared to 2.1% and $24.4 million in 2012. The outstanding balance on the Company's Revolving Credit Facility was $55.4 million and $6.0 million as of February 1, 2014 and February 2, 2013, respectively.

The Company also issues letters of credit under the Revolving Credit Facility to support certain merchandise purchases and to collateralize retained risks and deductibles under various insurance programs. At February 1, 2014, the Company had outstanding letters of credit totaling approximately $5.4 million. These letters of credit expire within twelve months of issuance. Excess borrowing availability under the Revolving Credit Facility at February 1, 2014, net of letters of credit outstanding, outstanding borrowings and accrued interest of $0.1 million, was $189.1 million.

The Revolving Credit Facility agreement contains covenants that, among other things, restrict, based on required levels of excess availability, (i) the amount of additional debt or capital lease obligations, (ii) the payment of dividends and repurchase of common stock under certain circumstances and (iii) related party transactions. The Revolving Credit Facility agreement also contains a fixed charge coverage ratio covenant in the event excess availability is below a defined threshold or an event of default has occurred. At February 1, 2014, the Company was in compliance with all of the financial covenants of the Revolving Credit Facility agreement and expects to continue to be in compliance in 2014.

While infrequent in occurrence, occasionally the Company is responsible for the construction of leased stores and for paying project costs. ASC No. 840-40-55, The Effect of Lessee Involvement in Asset Construction, requires the Company to be considered the owner (for accounting purposes) of this type of project during the construction period. Such leases are accounted for as finance lease obligations with the amounts received from the landlord being recorded in debt obligations. Interest expense is recognized at a rate that will amortize the finance lease obligation over the initial term of the lease. Where ASC No. 840-40-55 was applicable, the Company has recorded finance lease obligations with interest rates ranging from 6.1% to 16.9% on its Consolidated Balance Sheets related to five store leases as of February 1, 2014. Minimum annual payments required under existing finance lease obligations as of February 1, 2014 are as follows (in thousands):



Fiscal Year	Minimum Lease Payments		Less: Interest		Principal Payments
2014	$	1,346	$	487	$	859
2015	1,366		404		962
2016	1,366		311		1,055
2017	1,366		207		1,159
2018	1,096		101		995
Thereafter	580		26		554
Total	$	7,120	$	1,536	$	5,584

During 2013, the Company financed approximately $2.2 million of capital expenditures, bearing interest of 2.1%, of which $1.5 million will be paid in 2014 and $0.7 million in 2015.