Stein Mart 2015 Annual Report Download - page 37

STEIN MART, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in tables in thousands, except per share amounts)
F-13
Store assets are considered Level 3 assets in the fair value hierarchy as the inputs for calculating the fair value of these assets are based
on the best information available, including prices for similar assets.
3. Accrued Expenses and Other Current Liabilities
The major components of accrued expenses and other current liabilities are as follows:
January 30, January 31,
2016 2015
Compensation and employee benefits 11,600$ 12,519$
Unredeemed gift and merchandise return cards 11,310 10,614
Property taxes 12,286 12,805
Accrued vacation 7,306 7,241
Other 29,069 26,034
Accrued expenses and other current liabilities 71,571$ 69,213$
4. Debt
On February 3, 2015, we entered into a $250 million senior secured revolving credit facility pursuant to a second amended and restated
credit agreement with Wells Fargo Bank (the “Credit Agreement”) that will mature in February 2020 and a secured $25 million master loan
agreement with Wells Fargo Equipment Finance, Inc. (the “Equipment Term Loan” and, together with the Credit Agreement, the “Credit
Facilities”) that will mature in February 2018. The Credit Facilities replace the Company’s former $100 million senior secured revolving
credit facility which was set to mature on February 28, 2017. Borrowings under the Credit Facilities were initially used for a special
dividend, but subsequently may be used for working capital, capital expenditures and other general corporate purposes. During 2015, debt
issuance costs associated with the Credit Facilities were capitalized in the amount of $0.4 million and will be amortized over their
respective terms.
Long-term debt consisted of the following at January 30, 2016:
Revolving credit facility 169,400$
Equipment term loan 20,833
Total debt 190,233
Current maturities (10,000)
Debt issuance costs (83)
Long-term debt 180,150$
The aggregate maturities of long-term debt subsequent to January 30, 2016 for the following fiscal years:
2016 10,000$
2017 10,833
2018 -
2019 -
2020 -
Thereafter 169,400
Total 190,233$
The total amount available for borrowings under the Credit Agreement is the lesser of $250 million or 100% of eligible credit card
receivables and the Net Recovery Percentage of inventories less reserves. At January 30, 2016, in addition to outstanding borrowings
under the Credit Agreement, the Company had $6.4 million of outstanding letters of credit. Our unused availability under the Credit
Agreement was $74.2 million at January 30, 2016.
The Credit Facilities contain customary representations and warranties, affirmative and negative covenants (including, in the Credit
Agreement, the requirement of a 1 to 1 consolidated fixed charge coverage ratio upon the occurrence and during the continuance of any
Covenant Compliance Event, as defined in the Credit Agreement), and events of default for facilities of this type and are cross-
collateralized and cross-defaulted. Collateral for the Credit Facilities consists of substantially all of our personal property. Wells Fargo
Bank has a first lien on all collateral other than equipment and Wells Fargo Equipment Finance has a first lien on equipment. At January
30, 2016, we were in compliance with all debt covenants.