Barnes and Noble 2006 Annual Report Download - page 38

5. RECEIVABLES, NET
Receivables represent customer, credit/debit card,
advertising, landlord and other receivables due within
one year as follows:
FEBRUARY 3,
2007
JANUARY 28,
2006
Credit/debit card receivables a$ 31,230 33,411
Trade accounts 18,988 18,885
Current portion of note
receivable from GameStop 12,173 12,173
Advertising 9,367 9,875
Receivables from landlords for
leasehold improvements 10,725 14,936
Other receivables 17,984 9,837
Total receivables, net $ 100,467 99,117
a Credit/debit card receivables consist of receivables from credit/
debit card companies. The Company assumes no customer credit
risk for these receivables.
6. DEBT
On August , , the Company entered into
Amendment No.  (Amended New Facility) to the
Company’s Credit Agreement, dated as of June , 
(the New Facility). The Amended New Facility amended
the New Facility to extend the maturity date to July ,
 from June , . The Amended New Facility also
amended the New Facility: () to reduce the applicable
margin that is applied to (x) Eurodollar — based loans
above the publicly stated Eurodollar rate and (y) standby
letters of credit to a spread ranging from . to
. from the current range of . to .;
() to reduce the fee paid on commercial letters of credit
to a range of . to . from the current
range of . to .; and () to reduce the
commitment fee to a range of . to . from a
range of . to .. In each case, the applicable
rate is based on the Company’s consolidated fi xed charge
coverage ratio. Proceeds from the Amended New Facility
will be used for general corporate purposes, including
seasonal working capital needs.
The Amended New Facility, as did the New Facility,
includes an , fi ve-year revolving credit facility,
which under certain circumstances may be increased
to ,, at the option of the Company. The New
Facility replaced the Amended and Restated Credit and
Term Loan Agreement, dated as of August ,  (the
Prior Facility), which consisted of a , revolving
credit facility and a , term loan. The revolving
credit facility portion was due to expire on May , 
and the term loan had a maturity date of August , .
The Prior Facility was terminated on June , , at
which time the prior outstanding term loan of ,
was repaid. Letters of credit issued under the Prior
Facility, which totaled approximately , as of June
, , were transferred to become letters of credit
under the New Facility.
On June , , the Company completed the redemp-
tion of its , outstanding . convertible
subordinated notes due . Holders of the notes con-
verted a total of , principal amount of the notes
into , shares of common stock of the Company,
plus cash in lieu of fractional shares, at a price of
. per share. The Company redeemed the balance
of , principal amount of the notes at an aggre-
gate redemption price, together with accrued interest
and redemption premium, of ,. The write-off
of the unamortized portion of the deferred fi nancing
fees from the issuance of the notes and the redemption
premium resulted in a charge of ,.
On December , , the Company, certain of its
subsidiaries, the lenders under the Company’s Credit
Agreement (Lenders), as amended, dated as of June ,
, Bank of America, N.A., as administrative agent
for the Lenders (Administrative Agent), and each of the
guarantors named therein, entered into a waiver to the
Credit Agreement (Waiver Agreement).
Pursuant to the Waiver Agreement: () the due date (Due
Date) for the Company to provide the Lenders and the
Administrative Agent with the required offi cer’s certifi ca-
tion of the Company’s unaudited consolidated fi nancial
statements for the fi scal quarter ended October , 
was extended until the earliest of (i) the date that is 
days after the date (without giving eff ect to any extension
thereof) upon which the Company is required to fi le with
the SEC its annual report on Form -K for its fi scal year
ending February ,  (-K Certifi cation Date), (ii)
any announcement by the Company that it will not fi le
its annual report on Form -K for its fi scal year ending
February ,  on or by the -K Certifi cation Date, (iii)
any breach by the Company of any undertaking on its part
contained in the Waiver Agreement, and (iv) the occur-
rence of any other event of default (the earliest such date
36 Barnes & Noble, Inc. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued