N O T E S T O C O N S O L I D A T E D F I N A N C I A L S T A T E M E N T S
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GUESS?, Inc. and Subsidiaries
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N O T E 7 . N O T E S P A Y A B L E A N D L O N G - T E R M D E B T
Notes payable and long-term debt are summarized as follows (in thousands):
2 0 0 0
1999
9
1
/
2
% Senior Subordinated Notes due 2003
$ 79,562
$79,562
$125 million revolving credit line
22,400
--
Revolving bank loan bearing interest at 1.75% above
the Canadian prime rate plus an amount equal to
0.5% per month of the average outstanding balance,
payable on demand, but commencing January 1, 2001
by way of 24 equal consecutive minimum payments
3,322
2,770
Advances under a demand line of credit of $17,347 with
advances thereon bearing interest at the Canadian
prime rate plus 1%
11,786
6,818
Other obligations, maturing in varying amounts through 2004
512
1,688
117,582
90,838
Less current installments
13,801
7,475
Long-term debt, excluding current installments
$103,781
$83,363
In December 1999, the Company entered into a $125 million Credit Agreement ("Credit Facility"), subject to a borrowing base calculation.
The Credit Facility provides the Company with a revolving credit line, which includes a $50 million sub-limit for letters of credit.
Outstanding borrowings are secured by inventory and accounts receivable. The Credit Facility bears interest at the London Interbank
Offered Rate ("LIBOR") plus a range as defined or the greater of the Prime rate, the base CD rate plus 100 basis points or the Federal
Funds rate (collectively "ABR") plus a range as defined depending on the duration and type of loan facility. The credit facility expires
on October 31, 2002. At December 31, 2000, the Company had $22.4 million of outstanding borrowings under the Credit Facility,
$4.0 million in outstanding standby letters of credit and $17.6 million in outstanding documentary letters of credit. At December 31,
2000, the Company had $81.0 million available for future borrowings under such facility. At December 31, 2000, the weighted average
interest rate on the outstanding borrowings was 9.4%. The Credit Facility contains various restrictive covenants requiring, among
other things, the maintenance of certain financial fixed charge ratios. At December 31, 2000, the Company was in technical non-
compliance with the fixed charge ratio covenant. On March 27, 2001, the Company's bank lenders agreed to amend the Credit
Facility Agreement to cure non-compliance and revise certain terms, including modifications to the financial covenants, the addition of
a liquidity ratio and an amendment to the range of interest rates based on the leverage ratio as follows: LIBOR plus 100 basis points
to LIBOR plus 225 basis points, ABR to ABR plus 125 basis points and commitment fees of 25 basis points to 62.5 basis points.
Accordingly, the Company is presently in compliance with all terms of the Credit Facility, as amended.
Maturities of long-term debt at December 31, 2000 are as follows:
2001
$ 13,801
2002
24,042
2003
79,581
2004
158
$117,582
The Senior Subordinated Notes are redeemable at the option of the Company, in whole or in part, at any time at various redemption
prices. During 1999, the Company repurchased $19.4 million of its Senior Subordinated Notes.
