The Term Loan is also required to be prepaid in an amount equal to 75% of the “Excess Cash Flow” (as defined in the Term Loan Credit Agreement) of the Company with respect to each fiscal year ending on or after January 31, 2018. The percentage of Excess Cash Flow that must be so applied is reduced to 50% if the Company’s senior secured leverage ratio is less than 3.00 to 1.00, to 25% if the Company’s senior secured leverage ratio is less than 2.75 to 1.00 and to 0% if the Company’s senior secured leverage ratio is less than 2.25 to 1.00.

Prepayment percentage of excess cash flow

75.00%

Prepayment percentage of excess cash flow when leverage ratio less than 3.00 to 1.00

50.00%

Prepayment percentage of excess cash flow when leverage ratio less than 2.75 to 1.00

25.00%

Prepayment percentage of excess cash flow when leverage ratio less than 2.25 to 1.00

0.00%

Leverage ratio description for 50% prepayment

Less than 3.00 to 1.00

Leverage ratio description for 25% prepayment

Less than 2.75 to 1.00

Leverage ratio description for 0% prepayment

Less than 2.25 to 1.00

Debt issuance costs

$ 18,300,000

Weighted average interest rate

6.25%

Change in interest rate

0.25%

Effect of change on interest expenses

$ 750,000

Interest rate terms

Interest on the outstanding principal amount of the Term Loan accrues at a rate equal to LIBOR, subject to a 1% floor, plus an applicable margin of 5.25% or an alternate base rate (defined as the greatest of (i) the “prime rate” as published by the Wall Street Journal from time to time, (ii) the federal funds rate plus 0.5% or (iii) the LIBOR rate for a borrowing with an interest period of one month) plus 4.25%, per annum, payable in cash.

Term loan | LIBOR plus

Debt Instrument [Line Items]

Spread interest rate

4.25%

Term loan | Federal funds rate plus

Debt Instrument [Line Items]

Spread interest rate

0.50%

New revolving credit facility

Debt Instrument [Line Items]

Maximum borrowing amount

$ 650,000,000

Debt instrument commitment fee percentage

0.25%

Term of credit agreement

5 years

Term loan description

The new revolving credit facility contains a number of covenants that, among other things, restrict the Company’s ability, subject to specified exceptions, to incur additional debt; incur liens; sell or dispose of assets; merge with other companies; liquidate or dissolve itself; acquire other companies; make loans, advances, or guarantees; and make certain investments. In certain circumstances, the new revolving credit facility also requires G-III to maintain a minimum fixed charge coverage ratio, as defined, that should not exceed 1.00 to 1.00 for each period of twelve consecutive fiscal months of holdings.

Weighted average interest rate

3.19%

Borrowings outstanding

$ 91,100,000

Debt discount

12,400,000

New revolving credit facility | Trade letters of credit

Debt Instrument [Line Items]

Borrowings outstanding

10,400,000

New revolving credit facility | Standby letters of credit

Debt Instrument [Line Items]