Quarterly report pursuant to Section 13 or 15(d)

Note 7 - Long-term Debt

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Note 7 - Long-term Debt
 9 Months Ended
Oct. 31, 2024
Notes to Financial Statements  
Debt Disclosure [Text Block]

(7)    Long-Term Debt

 

Debt consisted of the following (in thousands):

 

   

October 31, 2024

    

January 31, 2024

  

Term Loan - current portion

   $ 6,404     $ 6,404  

Current maturities of long-term debt

   $ 6,404     $ 6,404  
                 

Term Loan - long-term portion

   $ 583,394     $ 588,197  

Original issue discount - long-term portion

     (5,886 )     (6,942 )

Deferred financing costs - long-term portion

     (3,196 )     (3,768 )

Long-term debt

   $ 574,312     $ 577,487  

 

The Company’s debt outstanding as of October 31, 2024 matures as shown below (in thousands):

 

Future principal payments due for fiscal years ending January 31:

        

2025 (three months remaining)

   $ 1,601  

2026

     4,803  

2027

     6,404  

2028

     8,005  

2029

     568,985  

Thereafter

     —  

Total payments

     589,798  

Current portion

     (6,404 )

Unamortized original issue discount and issuance costs

     (9,082 )

Long-term portion

   $ 574,312  

 

Refer to Note 14 “Long-Term Debt” in our 2024 Form 10-K for information regarding the Company's term loan and accounts receivable facility (prior to the amendment discussed below).

 

We also have access to up to $75.0 million of borrowings under our accounts receivable facility. In November 2024, the accounts receivable facility was amended to, among other things, extend the maturity to the earlier of (i) November 26, 2029 or (ii) 90 days prior to the maturity of any corporate debt, reduce the fixed component of the interest rate to 2.61% per annum from 3.11% per annum, increase the highest advance rate from 85% to 90%, reduce the minimum outstanding balance requirement from $10 million to $1 million, and allow for ad hoc borrowings and repayments. Based on seasonality of billings and the characteristics of accounts receivable, some of which are not eligible for advances, we are not always able to access the full $75.0 million available capacity. The reserve balance associated with the accounts receivable facility was $1.5 million on  October 31, 2024 and is classified as restricted cash on the condensed consolidated balance sheet. The interest rate on borrowings outstanding under the accounts receivable facility was 7.82% on  October 31, 2024. As of October 31, 2024, $10.0 million was drawn under the accounts receivable facility and is classified as a current liability on the balance sheet.