NOTES PAYABLE AND OTHER LIABILITIES

12 Months Ended

Jan. 31, 2016

Debt Disclosure [Abstract]

NOTES PAYABLE AND OTHER LIABILITIES

NOTE E — NOTES PAYABLE AND OTHER LIABILITIES

The credit agreement with JPMorgan Chase Bank, N.A., as Administrative Agent for a group of lenders, is a five-year senior secured credit facility through August 2017 providing for borrowings in the aggregate principal amount of up to $450 million. Amounts available under the credit agreement are subject to borrowing base formulas and other advances as specified in the credit agreement. As of January 31, 2016, there was $444.5 million available under the credit agreement.

Borrowings bear interest, at the Company’s option, at LIBOR plus a margin of 1.5% to 2.0% or prime plus a margin of 0.5% to 1.0%, with the applicable margin determined based on availability under the credit agreement. The credit agreement requires G-III to maintain a minimum fixed charge coverage ratio, as defined, and under certain circumstances permits the Company to make payments for cash dividends, stock redemptions and share repurchases subject to compliance with certain covenants. As of January 31, 2016, the Company was in compliance with these covenants.

The credit agreement is secured by all of the assets of G-III Apparel Group, Ltd. and its subsidiaries, G-III Leather Fashions, Inc., Riviera Sun, Inc., CK Outerwear, LLC, Andrew & Suzanne Company Inc., AM Retail Group, Inc., G-III Apparel Canada ULC, G-III License Company, LLC and AM Apparel Holdings, Inc.

The weighted average interest rate for amounts borrowed under the credit facility was 2.1% and 2.2% for the years ended January 31, 2016 and 2015, respectively. The Company was contingently liable under letters of credit in the amount of approximately $5.5 million and $8.0 million at January 31, 2016 and 2015, respectively.

In October 2014, the Company repurchased the unsecured promissory notes issued in August 2012 in connection with the acquisition of Vilebrequin. The notes were repurchased at a discount from the original principal amount of  €15.0 million (See Note L — Other Income).