DEBT OBLIGATIONS

Debt obligations consisted of the following (in thousands):



	February 2, 2019		February 3, 2018
Revolving loan	$	204,044	$	179,288
Term loan	50,000		—
Finance obligations	554		1,549
Other financing	508		2,498
Total debt obligations	255,106		183,335
Less: Current portion of debt obligations	4,812		2,985
Long-term debt obligations	$	250,294	$	180,350

During 2018, we entered into two amendments to our senior secured revolving credit facility agreement. These amendments provide us with term loans in the aggregate amount of $50.0 million (“Term Loan”). As a result, the credit facility agreement now includes the pre-existing revolving loan (“Revolving Loan”) and the Term Loan (jointly referred to as the “Credit Facility”). The Term Loan increased total availability under the Credit Facility to $450.0 million, with a seasonal increase to $475.0 million and a $25.0 million letter of credit sublimit. The Term Loan is payable in quarterly installments of $1.3 million beginning on June 15, 2019, with the remaining balance due upon maturity. The Credit Facility matures on December 16, 2021.

We use the 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 under the Credit Facility are limited to the availability under a borrowing base that is determined principally on eligible inventory as defined by the Credit Facility agreement. The Credit Facility is secured by our inventory, cash, cash equivalents and substantially all of our other assets. The daily interest rates are determined by a prime rate or LIBOR, plus an applicable margin, as set forth in the Credit Facility agreement. During 2018, the weighted average interest rate on outstanding borrowings and the average daily borrowings on the Credit Facility were 3.86% and $280.2 million, respectively, as compared to 2.69% and $224.5 million in 2017.

Letters of credit issued under the Credit Facility support certain merchandise purchases and collateralize retained risks and deductibles under various insurance programs. At February 2, 2019, outstanding letters of credit totaled approximately $6.7 million. These letters of credit expire within 12 months of issuance.

The Credit Facility agreement contains a covenant requiring us to maintain excess availability at or above $35.0 million or 10% of the Adjusted Combined Loan Cap (as defined therein). The Credit Facility agreement also contains covenants which, among other things, restrict (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. At February 2, 2019, we were in compliance with the debt covenants of the Credit Facility agreement and we expect to remain in compliance. Excess availability under the Credit Facility at February 2, 2019 was $82.3 million.

At February 2, 2019, $50.0 million remained outstanding under our Term Loan. Minimum annual principal payments required under the Term Loan are as follows (in thousands).



Fiscal Year	Minimum Principal Payments
2019	$	3,750
2020	5,000
2021	41,250
Total	$	50,000

While infrequent in occurrence, occasionally we are responsible for the construction of leased stores and for paying project costs. ASC 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 840-40-55 was applicable, we have recorded finance obligations with interest rates of 6.1% and 12.3% on our consolidated financial statements related to two store leases as of February 2, 2019. Minimum annual payments required under existing finance obligations as of February 2, 2019 are as follows (in thousands):



Fiscal Year	Minimum Payments		Less: Interest		Principal Payments
2019	$	580	$	26	$	554

At February 2, 2019, $0.5 million remained outstanding under our 2016 secured equipment financing note, which will be repaid in 2019. The note bears an effective interest rate of 3.2%.