NOTE 6 - DEBT OBLIGATIONS

Debt obligations consisted of the following (in thousands):



	January 30, 2016		January 31, 2015
Revolving Credit Facility	$	156,840	$	41,910
Finance obligations	3,764		4,725
Other financing	5,119		753
Total debt obligations	165,723		47,388
Less: Current portion of debt obligations	2,847		1,715
Long-term debt obligations	$	162,876	$	45,673

On October 6, 2014, we entered into a Second Amended and Restated Credit Agreement for a $300.0 million senior secured revolving credit facility ("Revolving Credit Facility") with a seasonal increase to $350.0 million and a $50.0 million letter of credit subfacility. The Revolving Credit Facility matures on October 6, 2019.

We use the Revolving Credit Facility to provide financing for working capital and general corporate purposes, as well as to finance capital expenditures and to support our letter of credit requirements. Borrowings 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, cash and cash equivalents are pledged as collateral. The daily interest rates are determined by a prime rate or LIBOR, plus an applicable margin, as set forth in the Revolving Credit Facility agreement. During 2015, the weighted average interest rate on outstanding borrowings and the average daily borrowings under the Revolving Credit Facility were 1.53% and $102.5 million, respectively, as compared to 1.71% and $81.4 million in 2014.

Letters of credit issued under the Revolving Credit Facility support certain merchandise purchases and collateralize retained risks and deductibles under various insurance programs. At January 30, 2016, we had outstanding letters of credit totaling approximately $5.2 million. These letters of credit expire within twelve months of issuance. Excess borrowing availability under the Revolving Credit Facility at January 30, 2016 was $137.8 million.

The Revolving Credit Facility agreement contains covenants which, 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 to $30.0 million in a fiscal year, and (iii) the repurchase of common stock under certain circumstances. The 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 January 30, 2016, we were in compliance with all of the financial covenants of the Revolving Credit Facility agreement and expect to continue to be in compliance in 2016.

While infrequent in occurrence, occasionally we are 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 us to be considered the owner (for accounting purposes) of this type of project during the construction period. Such leases are accounted for as finance 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 obligation over the initial term of the lease. Where ASC No. 840-40-55 was applicable, we have recorded finance obligations with interest rates ranging from 6.1% to 16.9% on our consolidated financial statements related to five store leases as of January 30, 2016. Minimum annual payments required under existing finance obligations as of January 30, 2016 are as follows (in thousands):



Fiscal Year	Minimum Payments		Less: Interest		Principal Payments
2016	$	1,366	$	310	$	1,056
2017	1,366		207		1,159
2018	1,096		101		995
2019	580		26		554
Total	$	4,408	$	644	$	3,764

During 2015, we financed approximately $5.1 million of capital expenditures, bearing interest of 1.4% of which $1.8 million will paid in 2016 and $3.3 million will be paid in 2017.