Debt

12 Months Ended

Jan. 28, 2023

Debt Disclosure [Abstract]

Debt

2. Debt

Long-term debt, which excludes borrowings on the revolving credit facility, consists of the following unsecured debt:

			Outstanding
Maturity (Dollars in Millions)	Effective Rate at Issuance	Coupon Rate	January 28, 2023	January 29, 2022
2023	3.25%	3.25%	$164	$164
2023	4.78%	4.75%	111	111
2025	9.50%	9.75%	113	113
2025	4.25%	4.25%	353	353
2029	7.36%	7.25%	42	42
2031	3.40%	3.63%	500	500
2033	6.05%	6.00%	112	112
2037	6.89%	6.88%	101	101
2045	5.57%	5.55%	427	427
Outstanding unsecured senior debt			1,923	1,923
Unamortized debt discounts and deferred financing costs			(11)	(13)
Current portion of unsecured senior debt			(275)	—
Long-term unsecured senior debt			$1,637	$1,910
Effective interest rate at issuance			4.89%	4.89%

Our estimated fair value of unsecured senior long-term debt is determined using Level 1 inputs, using financial instruments with unadjusted, quoted prices listed on active market exchanges. The estimated fair value of our unsecured senior debt was $1.6 billion at January 28, 2023 and $2.0 billion at January 29, 2022.

In September 2022, Standard & Poor's downgraded our credit rating from BBB- to BB+. As a result of the downgrade, our 3.375% notes and 9.50% notes coupon rates have increased 25 bps due to the coupon step provision within these bonds. Additionally, in December 2022, Moody's downgraded our credit rating from Baa2 to Ba2. As a result of the downgrade, the 3.375% notes and 9.50% notes coupon rates will increase another 50 bps in May 2023 due to the coupon step provision within these bonds.

In January 2023, we entered into a Credit Agreement with various lenders which provides for a $1.5 billion senior secured, asset based revolving credit facility that will mature in January 2028 and replaced our existing senior unsecured revolving credit facility. The revolver is secured by substantially all of our assets other than real estate, and contains customary events of default and financial, affirmative, and negative covenants, including but not limited to, a springing financial covenant related to our fixed charge coverage ratio and restrictions on indebtedness, liens, investments, asset dispositions, and restricted payments. Outstanding borrowings under the credit facility bear interest at a variable rate based on SOFR plus the applicable margin. As of January 28, 2023, we had $14 million of standby and trade letters of credit outstanding under the credit facility, which reduces the available borrowing capacity. Borrowings under the revolving credit facility, recorded as short-term debt, has $85 million outstanding as of January 28, 2023, and approximately $1.4 billion remains available under the revolver. No amounts were outstanding at January 29, 2022 under our previous credit agreement.

Our various debt agreements contain covenants including limitations on additional indebtedness and certain financial tests. As of January 28, 2023, we were in compliance with all covenants of the various debt agreements.

We also had outstanding standby and trade letters of credit outside of the credit facility totaling approximately $64 million at January 28, 2023.