Barnes and Noble 2006 Annual Report Download - page 18

outstanding term loan of . million was repaid.
Letters of credit issued under the Prior Facility, which
totaled approximately . million as of June , ,
were transferred to become letters of credit under the
New Facility.
On June , , the Company completed the redemp-
tion of its . million outstanding . convert-
ible subordinated notes due . Holders of the notes
converted a total of . million 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 . million principal amount of the notes
at an aggregate redemption price, together with accrued
interest and redemption premium, of . million.
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 .
million.
Selected information related to the Company’s term
loan, convertible subordinated notes and the Amended
New, New and Prior Facilities:
FISCAL YEAR 2006 2005 2004
Revolving credit facility $ — — —
Term loan — — 245,000
Balance at end of year $ — — 245,000
Average balance
outstanding during the year $ 23,337 121,915 276,043
Maximum borrowings
outstanding during the year $ 91,800 245,000 392,700
Weighted average interest
rate during the yeara15.40% 6.91% 5.25%
Interest rate at end of year — — 3.78%
a The fi scal 2006 interest rate is higher than prior periods due to the
lower average borrowings and the fi xed nature of the amortization
of the deferred fi nancing fees and commitment fees. Excluding the
deferred fi nancing fees and the commitment fees in fi scal 2006, the
weighted average interest rate was 7.70%.
Fees expensed with respect to the unused portion of
the Amended New, New and Prior Facilities totaled
. million, . million and . million, during fi scal
,  and , respectively.
The amounts outstanding under the Amended New,
New and Prior Facilities, if any, have been classifi ed
as long-term debt based on the Company’s ability to
continually maintain principal amounts outstanding.
The Company has no agreements to maintain
compensating balances.
Capital Investment
Capital expenditures totaled . million, .
million and . million during fi scal , 
and , respectively. Capital expenditures in fi scal
, primarily for the opening of  to  new Barnes
& Noble stores, the maintenance of existing stores and
system enhancements for the retail stores and the web-
site, are projected to be in the range of . million to
. million, although commitment to many of such
expenditures has not yet been made.
Based on current operating levels and the store
expansion planned for the next fi scal year, management
believes cash and cash equivalents on hand, cash fl ows
generated from operating activities, short-term vendor
fi nancing and borrowing capacity under the Amended
New Facility will be suffi cient to meet the Company’s
working capital and debt service requirements, and
support the development of its short- and long-term
strategies for at least the next  months.
In fi scal , the Board of Directors of the Company
authorized a common stock repurchase program for
the purchase of up to . million of the Company’s
common stock. The Company completed this .
million repurchase program during the fi rst quarter of
fi scal . On March , , the Company’s Board
of Directors authorized an additional share repurchase
program of up to . million of the Company’s com-
mon stock. The Company completed this . million
repurchase program during the third quarter of fi scal
. On September , , the Company’s Board of
Directors authorized a new share repurchase program of
up to . million of the Company’s common stock.
16 Barnes & Noble, Inc. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS continued