Barnes and Noble 2015 Annual Report Download - page 28

pal amount) of the Junior Seller Note. The net short-term
payable of . million was paid in September , in
accordance with its terms.
The Company is party to an amended and restated credit
facility with Bank of America, N.A., as administrative
agent, collateral agent and swing line lender, and other
lenders, dated as of April ,  (as amended and
modified to date, the Credit Facility), consisting of up to
. billion in aggregate commitments under a five-year
asset-backed revolving credit facility expiring on April ,
, which is secured by eligible inventory and accounts
receivable with the ability to include eligible real estate
and related assets. Borrowings under the Credit Facility
are limited to a specified percentage of eligible invento-
ries and accounts receivable and accrued interest, at the
election of the Company, at Base Rate or LIBO Rate, plus,
in each case, an Applicable Margin (each term as defined
in the Credit Facility). In addition, the Company has the
option to request an increase in commitments under the
Credit Facility by up to . million, subject to certain
restrictions.
The Credit Facility requires Availability (as defined in the
Credit Facility) to be greater than the greater of (i) 
of the Loan Cap (as defined in the Credit Facility) and (ii)
. million. In addition, the Credit Facility contains
covenants that limit, among other things, the Company’s
ability to incur indebtedness, create liens, make invest-
ments, make restricted payments, merge or acquire assets,
and contains default provisions that are typical for this type
of financing, among other things. Proceeds from the Credit
Facility are used for general corporate purposes, including
seasonal working capital needs.
Selected information related to the Company’s credit facili-
ties (in thousands):
Fiscal 2015 Fiscal 2014 Fiscal 2013
Credit facility at period end $ — — 77,000
Average balance outstanding
during the period $ 18,227 48,254 214,702
Maximum borrowings
outstanding during the period $ 202,800 180,300 462,900
Weighted average interest
rate during the perioda38.18% 15.65% 5.56%
Interest rate at end of period 0.00% 0.00% 4.93%
a Includes commitment fees.
Fees expensed with respect to the unused portion of the
credit facilities were . million, . million and .
million during fiscal , fiscal  and fiscal ,
respectively.
The Company had . million of outstanding letters of
credit under the  Amended Credit Facility as of May ,
 compared with . million as of May , .
The Company has no agreements to maintain compensat-
ing balances.
Capital Investment
The Company’s investing activities consist principally of
capital expenditures for the maintenance of existing stores,
new store construction, digital initiatives and enhance-
ments to systems and the website. The Company is sched-
uled to launch its new eCommerce website in June .
The new website is expected to have better search capabili-
ties, improved user experience and yield cost savings to
the Company. The Company believes that the new website
will allow it to be more competitive in the marketplace
and continue to be a valuable resource for its customers,
whether they would like their purchased products shipped
to their homes or made available for pick up in the stores.
Capital expenditures totaled . million, . million
and . million during fiscal , fiscal  and fiscal
, respectively. Fiscal  capital expenditure levels
are expected to be comparable to fiscal , although
commitment to many such expenditures has not yet been
made. Capital expenditures planned for fiscal  primar-
ily include maintenance of existing stores, enhancements
to systems and the website, new college stores and digital
initiatives.
Based upon the Company’s current operating levels and
capital expenditures for fiscal , management believes
cash and cash equivalents on hand, funds available under
its credit facility and short-term vendor financing will be
sufficient to meet the Company’s normal working capital
and debt service requirements for at least the next twelve
months. The Company regularly evaluates its capital
structure and conditions in the financing markets to ensure
it maintains adequate flexibility to successfully execute its
business plan.
On May , , the Company announced that its Board
of Directors authorized a stock repurchase program for the
purchase of up to . million of the Company’s com-
mon stock. The maximum dollar value of common stock
that may yet be purchased under the current program is
approximately . million as of May , .
Stock repurchases under this program may be made
through open market and privately negotiated transactions
from time to time and in such amounts as management
deems appropriate. As of May , , the Company has
repurchased ,, shares at a cost of approximately
. billion under its stock repurchase programs. The
repurchased shares are held in treasury.
26 Barnes & Noble, Inc. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS continued