Barnes and Noble 1997 Annual Report Download - page 31

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Selected information related to the Company’s revolving
credit facility is as follows:
FISCAL YEAR 1997 1996 1995
Balance at end of year $284,800 40,000 72,400
Average balance outstanding
during the year $105,127 101,671 62,036
Maximum borrowings
outstanding during
the year $304,900 192,800 152,200
Weighted average interest
rate during the year 7.12% 7.56% 8.13%
Interest rate at end of year 6.60% 6.87% 8.21%
The balance outstanding as of January 31, 1998 reflects the
refinancing of the senior subordinated notes and the term loan.
The average balance outstanding during the period was
based on the number of days outstanding. The weighted-average
interest rate during the period was calculated as the result of divid-
ing the related interest expense by average borrowings outstanding.
Fees expensed with respect to the unused portion of the
Company’s revolving credit commitment were $1,204, $911 and
$454, during fiscal 1997,1996 and 1995, respectively.
Long-Term Debt
As of January 31, 1998 the $284,800 balance outstanding
under the Company’s New Facility has been classified as long-
term debt based on the terms of the credit agreement and the
Company’s intention to maintain principal amounts outstanding
through November 2002. As of February 1, 1997 classified as
long-term debt were both the $190,000, 117⁄8% senior subordinated
notes based on the January 15, 2003 maturity date, and the
$100,000 term loan outstanding under the Old Facility which had
scheduled repayments starting in 1998. The subordinated notes
and the term loan were paid on January 15,1998 and November 18,
1997, respectively.
The Company has no agreements to maintain compensat-
ing balances.
4. FAIR VALUES OF FINANCIAL INSTRUMENTS
The carrying values of cash and cash equivalents reported in
the accompanying consolidated balance sheets approximate fair
value due to the short-term maturities of these assets.
The aggregate fair value of the revolving credit facility, classi-
fied as long-term debt as of January 31, 1998, approximates its
carrying amount, because of its recent and frequent repricing
based upon market conditions. The fair value of long-term debt,
consisting of the senior subordinated notes and term loan as
of February 1, 1997, is based upon quoted market prices. Interest
rate swap agreements are valued based on market quotes obtained
from dealers. The fair value of the investment in Chapters Inc. is
based on quoted market prices and conversion rates at January 31,
1998 and February 1, 1997.
The carrying amounts and fair values of the Company’s
financial instruments as of January 31,1998 and February 1, 1997
are as follows:
JANUARY 31, FEBRUARY 1,
1998 1997
CARRYING FAIR CARRYING FAIR
AMOUNT VALUE AMOUNT VALUE
Cash and cash
equivalents $ 12,697 12,697 12,447 12,447
Revolving credit facility $ 284,800 284,800 40,000 40,000
Long-term debt $ — — 290,000 307,575
Interest rate swaps
liability $ — 1,463 — 218
Investment in
Chapters Inc. $ 17,686 31,445 8,541 11,843
27
Notes to Consolidated Financial Statements continued