Debt

Revolving Credit Facility

On June 28, 2013, as amended on March 31, 2015 and June 3, 2015, Lakeland Industries, Inc. and its wholly owned Canadian subsidiary, Lakeland Protective Wear Inc. (collectively the “Borrowers”), entered into a Loan and Security Agreement (the “Senior Loan Agreement”) with AloStar Business Credit, a division of AloStar Bank of Commerce (the “Senior Lender”). The Senior Loan Agreement provided the Borrowers with a $15 million revolving line of credit (the “Senior Credit Facility”), at a variable interest rate based on LIBOR, with a first priority lien on substantially all of the United States and Canada assets of the Company, except for its Mexican plant and the Canadian warehouse. After these amendments the maturity date of the Senior Credit Facility was extended to June 28, 2017 and the minimum interest rate floor became 4.25% per annum. On May 10, 2017, the Senior Loan Agreement was terminated, and the existing balance due was repaid with the proceeds from a new loan agreement with SunTrust Bank. See Note 13.

Borrowings in UK

On December 31, 2014, the Company and Lakeland Industries Europe, Ltd, (“Lakeland UK”), a wholly owned subsidiary of the Company, amended the terms of its existing line of credit facility with Hongkong and Shanghai Banking Corporation (“HSBC”) to provide for (i) a one-year extension of the maturity date of the existing financing facility to December 19, 2016, (ii) an increase in the facility limit from £1,250,000 (approximately USD $1.9 million, based on exchange rates at time of closing) to £1,500,000 (approximately USD $2.3 million, based on exchange rates at time of closing), and (iii) a decrease in the annual interest rate margin from 3.46% to 3.0%. In addition, pursuant to a letter agreement dated December 5, 2014, the Company agreed that £400,000 (approximately USD $0.6 million, based on exchange rates at time of closing) of the note payable by the UK subsidiary to the Company shall be subordinated in priority of payment to the subsidiary’s obligations to HSBC under the financing facility. The balance under this loan outstanding at April 30, 2017 and January 31, 2017 was USD $0.0 million and USD $0.1 million, respectively. On December 31, 2016, Lakeland UK entered into an extension of the maturity date of its existing financing facility with HSBC Invoice Finance (UK) Ltd. to December 19, 2017. Other than the extension of the maturity date and a small reduction of the service charge from 0.9% to 0.85%, all other terms of the facility remain the same.

Canada Loans

In September 2013, the Company refinanced its loan with the Development Bank of Canada (“BDC”) for a principal amount of approximately $1.1 million in both Canadian dollars and USD (based on exchange rates at time of closing). Such loan is for a term of 240 months at an interest rate of 6.45% per annum with fixed monthly payments of USD $6,048 (CAD $8,169) including principal and interest. It is collateralized by a mortgage on the Company's warehouse in Brantford, Ontario. The amount outstanding at April 30, 2017 is CAD $993,997 which is included as USD $678,000 in long term borrowings on the accompanying unaudited condensed consolidated balance sheet, net of current maturities of USD $50,000. The amount outstanding at January 31, 2017 was USD $691,000 (CAD $1.0 million) in long term borrowings, net of current maturities of USD $50,000.

Argentina Loan

In April 2015, Lakeland Argentina S.R.L. (“Lakeland Argentina”), the Company’s Argentina subsidiary was granted a $300,000 line of credit denominated in Argentine pesos, pursuant to a standby letter of credit granted by the parent company. The line of credit was paid in full during the course of normal operations and prior to April 30, 2017, except for $9,250 noted below.

On July 1, 2016, Lakeland Argentina and Banco de la Nación Argentina (“BNA”) entered into an agreement for Lakeland Argentina to obtain a loan in the amount of ARS 569,000 (approximately USD $38,000, based on exchange rates at time of closing); such loan is for a term of one year at an interest rate of 27.06% per annum. The amount outstanding at April 30, 2017 is ARS 142,250 (approximately USD $9,250) which is included as short-term borrowings on the unaudited condensed consolidated balance sheet.

Below is a table to summarize all of the debt amounts pursuant to the various banking arrangements described above (in 000’s):

	Short-Term				Long-term				Current Maturity of Long-term				Revolving Credit Facility
	4/30/2017		1/31/2017		4/30/2017		1/31/2017		4/30/2017		1/31/2017		4/30/2017		1/31/2017
Argentina	$	9	$	27	$	—	$	—	$	—	$	—	$	—	$	—
Canada		—		—		678		716		50		50		—		—
UK		—		126		—		—		—		—		—		—
USA		—		—		—		—		—		—		2,363		4,865
TOTALS	$	9	$	153	$	678	$	716	$	50	$	50	$	2,363	$	4,865

Five-year Debt Payout Schedule

This schedule reflects the liabilities as of April 30, 2017, and does not reflect any subsequent event (in 000’s):

	Total		1 Year or less		2 Years		3 Years		4 Years		5 Years		After 5 Years
Revolving credit facility	$	2,363	$	2,363	$	—	$	—	$	—	$	—	$	—
Borrowings in Canada		728		50		29		31		33		35		550
Borrowings in UK		—		—		—		—		—		—		—
Borrowings in Argentina		9		9		—		—		—		—		—
Total	$	3,100	$	2,422	$	29	$	31	$	33	$	35	$	550