Express 2011 Annual Report Download - page 80

The Company does not expect material adjustments to the total amount of unrecognized tax benefits within the
next 12 months, but the outcome of tax matters is uncertain and unforeseen results can occur.
The Company is currently not under examination by the IRS. Tax returns are generally subject to examination for
a period of three to five years after the filing of the respective return. The Company has one state income tax
return in the process of examination or administrative appeals.
As of January 28, 2012, U.S. taxes had not been provided on unremitted earnings of subsidiaries operating
outside of the United States due to an overall deficit position.
9. Debt
Borrowings outstanding consisted of the following:
January 28, 2012 January 29, 2011
(in thousands)
Opco Term Loan ........................ $ — $120,625
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3
⁄ 4 % Senior Notes ...................... 200,850 250,000
Debt discount on Senior Notes ............. (2,311) (3,218)
Total debt ......................... 198,539 367,407
Less: current portion ..................... — (1,250)
Total long-term debt ................. $198,539 $366,157
Opco Revolving Credit Facility
On July 29, 2011, Express Holding and its domestic subsidiaries entered into an Amended and Restated $200.0
million secured Asset-Based Loan Credit Agreement (the “Opco Revolving Credit Facility”). The Opco
Revolving Credit Facility amended, restated, and extended the existing asset-based revolving credit facility,
which was scheduled to expire on July 6, 2012. In connection with the amendment, the Company incurred $1.2
million of debt issuance costs that are being amortized on a straight-line basis through July 2016.
The Opco Revolving Credit Facility is scheduled to expire on July 29, 2016 and allows for up to $30.0 million of
swing line advances and up to $45.0 million to be available in the form of letters of credit. Borrowings under the
Opco Revolving Credit Facility bear interest at a rate equal to either the rate appearing on Bloomberg L.P.’s Page
BBAM1/(Official BBA USD Dollar Libor Fixings) (the “Eurodollar Rate”) plus an applicable margin rate or the
highest of (1) the prime lending rate, (2) 0.50% per annum above the federal funds rate and (3) 1% above the
Eurodollar Rate, in each case plus an applicable margin rate. The applicable margin rate is determined based on
excess availability as determined by reference to the borrowing base. The applicable margin for Eurodollar Rate-
based advances is between 1.50% and 2.00% based on the borrowing base.
The unused line fee payable under the Opco Revolving Credit Facility is incurred at 0.375% per annum of the
average daily unused revolving commitment during each quarter, payable quarterly in arrears on the first day of
each May, August, November, and February. In the event that (1) an event of default has occurred or (2) excess
availability plus eligible cash collateral is less than 12.5% of the borrowing base for 5 consecutive days, such
unused line fees are payable on the first day of each month.
Interest payments under the Opco Revolving Credit Facility are due quarterly on the first day of each May,
August, November, and February for base rate-based advances, provided, however, in the event that (1) an event
of default has occurred or (2) excess availability plus eligible cash collateral is less than 12.5% of the borrowing
base for 5 consecutive days, interest payments are due on the first day of each month. Interest payments under
the Opco Revolving Credit Facility are due on the last day of the interest period for Eurodollar Rate-based
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