Barnes and Noble 2007 Annual Report Download - page 16
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The Amended New Facility, as did the New Facility,
includes an . million fi ve-year revolving credit
facility, which under certain circumstances may be
increased to . billion 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 .
million revolving credit facility and a . million
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 . 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.
Selected information related to the Company’s Amended
New, New, and Prior Facilities (in thousands):
FISCAL YEAR 2007 2006 2005
Revolving credit facility at
year end $ — — —
Average balance
outstanding during the year $ 1,392 23,337 121,915
Maximum borrowings
outstanding during the year $ 37,600 91,800 245,000
Weighted average interest
rate during the yeara173.16% 15.40% 6.91%
Interest rate at end of year — — —
a The fi scal 2007 and 2006 interest rates are 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 2007 and 2006, the weighted average interest rate was 7.51%
and 7.70%, respectively.
Fees expensed with respect to the unused portion of the
Amended New, New and Prior Facilities were . mil-
lion, . million and . million, during fi scal ,
and , respectively.
The Company has no agreements to maintain compen-
sating 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 expan-
sion 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 stock repurchase
program of up to . million of the Company’s
common stock. The Company completed this .
million repurchase program during the third quarter
of fi scal . On September , , the Company’s
Board of Directors authorized an additional stock
repurchase program of up to . million of the
Company’s common stock. The Company completed this
. million repurchase program during the third
quarter of fi scal . On May , , the Company’s
Board of Directors authorized a new stock repurchase
program for the purchase of up to . million of the
Company’s common stock. The maximum dollar value
of common stock that may yet be purchased under the
current program is approximately . million as of
February , .
Stock repurchases under this program may be made
through open market and privately negotiated transac-
tions from time to time and in such amounts as manage-
ment deems appropriate. As of February , , the
Company has repurchased ,, shares at a cost of
approximately . million under its stock repurchase
programs. The repurchased shares are held in treasury.
The Amended New Facility, as did the New Facility,
includes an . million five-year revolving credit
facility, which under certain circumstances may be
increased to . billion 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 .
million revolving credit facility and a . million
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 . 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.
Selected information related to the Company’s Amended
New, New and Prior Facilities (in thousands):
FISCAL YEAR 2007 2006 2005
Revolving credit facility at
year end $ — — —
Average balance
outstanding during the year $ 1,392 23,337 121,915
Maximum borrowings
outstanding during the year $ 37,600 91,800 245,000
Weighted average interest
rate during the yeara173.16% 15.40% 6.91%
Interest rate at end of year — — —
a The fiscal 2007 and 2006 interest rates are higher than prior periods
due to the lower average borrowings and the fixed nature of the
amortization of the deferred financing fees and commitment fees.
Excluding the deferred financing fees and the commitment fees in
fiscal 2007 and 2006, the weighted average interest rate was 7.51%
and 7.70%, respectively.
Fees expensed with respect to the unused portion of the
Amended New, New and Prior Facilities were . mil-
lion, . million and . million, during fiscal ,
and , respectively.
The Company has no agreements to maintain compen-
sating balances.
Capital Investment
Capital expenditures totaled . million, .
million and . million during fiscal , and
, respectively. Capital expenditures in fiscal
, 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 expan-
sion planned for the next fiscal year, management
believes cash and cash equivalents on hand, cash flows
generated from operating activities, short-term vendor
financing and borrowing capacity under the Amended
New Facility will be sufficient 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 fiscal , 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 first quarter of
fiscal . On March , , the Company’s Board
of Directors authorized an additional stock repurchase
program of up to . million of the Company’s
common stock. The Company completed this .
million repurchase program during the third quarter
of fiscal . On September , , the Company’s
Board of Directors authorized an additional stock
repurchase program of up to . million of the
Company’s common stock. The Company completed this
. million repurchase program during the third
quarter of fiscal . On May , , the Company’s
Board of Directors authorized a new stock repurchase
program for the purchase of up to . million of the
Company’s common stock. The maximum dollar value
of common stock that may yet be purchased under the
current program is approximately . million as of
February , .
Stock repurchases under this program may be made
through open market and privately negotiated transac-
tions from time to time and in such amounts as manage-
ment deems appropriate. As of February , , the
Company has repurchased ,, shares at a cost of
approximately . million under its stock repurchase
programs. The repurchased shares are held in treasury.
14 Barnes & Noble, Inc. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS continued
14 Barnes & Noble, Inc. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS continued