THE CHILDREN’S PLACE RETAIL STORES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) 2. SHORT-TERM BORROWINGS prohibition on the payment of dividends. As of February 2, 2002, the Company was in compliance with all of its covenants under the Foothill Credit Facility. Noncompliance with these covenants could result in additional fees or could affect the availability of the facility. Amounts outstanding under the Foothill Credit Facility bear interest at a floating rate equal to the prime rate or, at the Company’s option, a LIBOR Rate plus a pre-determined spread. The LIBOR spread is 1.25% to 2.50% depending on the Company’s financial performance from time to time. The interest rate charged under the Foothill Credit Facility was 4.75% and 8.50% as of February 2, 2002 and February 3, 2001, respectively. In addition, the Company was also required to pay an anniversary fee of $93,750, $93,750 and $37,500 during fiscal 2001, fiscal 2000 and fiscal 1999, respectively. Borrowing activity under the Foothill Credit Facility was as follows (dollars in thousands): The Company has a working capital facility (the “Foothill Credit Facility”) with Foothill Capital Corporation (“Foothill Capital”). The Foothill Credit Facility provides for up to $75 million in borrowings which includes a sublimit of up to $60 million in letters of credit. Foothill Capital acts as our agent bank for a syndicated group of lenders on this facility. This working capital facility also contains provisions to increase borrowings up to $100 million (including a sublimit for letters of credit of $80 million), subject to sufficient collateralization and the syndication of the incremental line of borrowing. The amount that can be borrowed under the working capital facility depends on the Company’s levels of inventory and accounts receivable. The Foothill Credit Facility expires in July 2003 and provides for one year automatic renewal options. The Company had no outstanding borrowings and $3.3 million outstanding under the Foothill Credit Facility as of February 2, 2002 and February 3, 2001, respectively. Letters of credit outstanding as of February 2, 2002 and February 3, 2001 were $9.4 million and $13.8 million, respectively. Availability as of February 2, 2002 and February 3, 2001 was $57.2 million and $47.5 million, respectively. The Foothill Credit Facility also contains certain financial covenants, including, among others, the maintenance of minimum levels of earnings and current ratios and imposes certain limitations on the Company’s annual capital expenditures, as defined in the Foothill Credit Facility, as well as a For the Fiscal Year Ended February 2, 2002 February 3, 2001 Weighted average balances  outstanding.............................. $9,307 $16,574 Weighted average interest rate ......... 5.57 % 8.47 % Maximum balance outstanding ......... $31,034 $32,345 29