Revolving Credit Facilities and Debt |
6 Months Ended |
|---|---|
Aug. 02, 2025 | |
| Debt Disclosure [Abstract] | |
| Revolving Credit Facilities and Debt | 6. Revolving Credit Facilities and Debt
On December 20, 2024, we entered into a credit agreement with PNC Bank, National Association (the “bank”). The Credit Agreement provides for a revolving credit facility of up to $25 million (the “credit facility”) and is available for general corporate purpose. This Credit Facility also provides for the issuances of standby letters of credit in an amount not to exceed $17.5 million, commercial letters of credit in an amount not to exceed $10 million and borrowings in foreign currency with a borrowing sublimit not to exceed $15 million in equivalent U.S. dollars. The amount of borrowing available at any time under the Credit Facility is reduced by the amount of standby and commercial letters of credit outstanding at that time. This credit facility replaced our previously maintained agreement with Wells Fargo Bank, N.A. which we terminated on May 3, 2024.
The new Credit Facility is secured by cash and marketable securities that are in an account held and monitored by the Bank. The value of this collateral must always be greater than or equal to the new Credit Facility commitment amount of $25 million. Amounts borrowed under the new Credit Facility bear interest at the rate of SOFR plus 1.00% per annum. The Credit Agreement does not provide for any financial covenants but does include standard and customary covenants consistent with credit facilities of this nature. The new Credit Facility does not carry any ongoing or unused balance fees. The Credit Facility will mature on December 20, 2025.
We had open commercial letters of credit outstanding of less than $0.2 million at August 2, 2025, and no open commercial letters of credit outstanding at February 1, 2025. We had $3.2 million, and $2.7 million in issued, but undrawn, standby letters of credit backed by restricted cash deposits and marketable securities at the bank as of August 2, 2025 and February 1, 2025 respectively. |