TAPESTRY, INC. (TPR): debt financing — Tapestry expands revolving credit to $2B and adds $1.4B term loans for Capri acquisition

TAPESTRY, INC.

Revolving facility increased from $1.25B to $2.0B; $250M sublimit for certain funds to fund Capri buy.
New $1.05B 3-year and $350M 5-year unsecured term loan facilities for Capri acquisition cash needs.
Bridge facility commitments reduced from $8.0B to $6.6B after entering term loan agreements.
Post-acquisition net leverage ratio covenant steps down from 4.75x to 4.00x over 2025-2026.
Acquisition of Capri Holdings for $8.5B disclosed Aug 10, 2023; financing now largely in place.

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.95

TAPESTRY, INC. incurred term loan of $1,050,000,000 unsecured term loan facility maturing three years after the term loans thereunder are borrowed with Bank of America, N.A. at (x) in the case of the Three-Year Term Loan Facility, 0.250% for base rate loans maturing three years after the term loans thereunder are borrowed.

Instrument: term loan
Principal: $1,050,000,000 unsecured term loan facility maturing three years after the term loans thereunder are borrowed
Counterparty: Bank of America, N.A.
Rate: (x) in the case of the Three-Year Term Loan Facility, 0.250% for base rate loans
Maturity: three years after the term loans thereunder are borrowed
Event: incurrence

Exact text from the filing

the Company entered into a definitive credit agreement (the “Term Loan Agreement”) whereby the Administrative Agent, the other agents party thereto, and a syndicate of banks and financial institutions have committed to lend to the Company, subject to the satisfaction or waiver of the conditions set forth in the Term Loan Agreement, a $1,050,000,000 unsecured term loan facility maturing three years after the term loans thereunder are borrowed (the “Three-Year Term Loan Facility”)

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Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.95

TAPESTRY, INC. incurred revolving credit of $2,000,000,000 with Bank of America, N.A..

Instrument: revolving credit
Principal: $2,000,000,000
Counterparty: Bank of America, N.A.
Event: incurrence

Exact text from the filing

Under the Amended Credit Agreement, a syndicate of financial institutions and other lenders provided increases to the aggregate commitments to the revolving facility under the Existing Credit Agreement from $1,250,000,000 to $2,000,000,000 (the “Revolving Facility”).

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Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.95

TAPESTRY, INC. incurred term loan of a $350,000,000 term loan facility maturing five years after the term loans thereunder are borrowed with Bank of America, N.A. at (y) in the case of the Five-Year Term Loan Facility, 0.375% for base rate loans maturing five years after the term loans thereunder are borrowed.

Instrument: term loan
Principal: a $350,000,000 term loan facility maturing five years after the term loans thereunder are borrowed
Counterparty: Bank of America, N.A.
Rate: (y) in the case of the Five-Year Term Loan Facility, 0.375% for base rate loans
Maturity: five years after the term loans thereunder are borrowed
Event: incurrence

Exact text from the filing

a $350,000,000 term loan facility maturing five years after the term loans thereunder are borrowed (the “Five-Year Term Loan Facility”

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Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

TAPESTRY, INC. entered into Term Loan Agreement with Bank of America N.A., as administrative agent, and a syndicate of banks and financial institutions valued at $350,000,000 (effective 2023-08-30).

Action: entry
Agreement: credit facility
Counterparty: Bank of America N.A., as administrative agent, and a syndicate of banks and financial institutions
Value: $350,000,000
Effective: 2023-08-30

Exact text from the filing

On August 30, 2023, the Company entered into a definitive credit agreement (the “Term Loan Agreement”) whereby the Administrative Agent, the other agents party thereto, and a syndicate of banks and financial institutions have committed to lend to the Company, subject to the satisfaction or waiver of the conditions set forth in the Term Loan Agreement, a $1,050,000,000 unsecured term loan facility maturing three years after the term loans thereunder are borrowed

View on SEC.gov

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

TAPESTRY, INC. entered into Term Loan Agreement with Bank of America N.A., as administrative agent, and a syndicate of banks and financial institutions valued at $350,000,000 (effective 2023-08-30).

Action: entry
Agreement: credit facility
Counterparty: Bank of America N.A., as administrative agent, and a syndicate of banks and financial institutions
Value: $350,000,000
Effective: 2023-08-30

Exact text from the filing

On August 30, 2023, the Company entered into a definitive credit agreement (the “Term Loan Agreement”) whereby the Administrative Agent, the other agents party thereto, and a syndicate of banks and financial institutions have committed to lend to the Company, subject to the satisfaction or waiver of the conditions set forth in the Term Loan Agreement, a $1,050,000,000 unsecured term loan facility maturing three years after the term loans thereunder are borrowed (the “Three-Year Term Loan Facility”) and a $350,000,000 term loan facility maturing five years after the term loans thereunder are borrowed

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Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

TAPESTRY, INC. amended Amendment No. 1 to Credit Agreement with Bank of America N.A., as administrative agent, and the financial institutions party thereto as lenders valued at $1,250,000,000 to $2,000,000,000 (effective 2023-08-30).

Action: amendment
Agreement: credit facility
Counterparty: Bank of America N.A., as administrative agent, and the financial institutions party thereto as lenders
Value: $1,250,000,000 to $2,000,000,000
Effective: 2023-08-30

Exact text from the filing

On August 30, 2023, Tapestry, Inc. (the “Company”) amended its Existing Credit Agreement (as defined below), originally dated as of May 11, 2022, among the Company, as borrower, certain subsidiaries of the Company, as guarantors, Bank of America N.A., as administrative agent (the “Administrative Agent”), and the financial institutions parties thereto as lenders (the “Existing Credit Agreement”) pursuant to the Amendment No. 1 to Credit Agreement dated as of August 30, 2023, among the Company, the Administrative Agent, and the financial institutions party thereto as lenders

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TAPESTRY, INC. filing history →

Source: SEC EDGAR

accession 0001140361-23-042379

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