Movado gets $100 million senior secured revolving credit facility

By Jennifer Chiou

New York, Feb. 5 – Movado Group, Inc. entered into a $100 million senior secured revolving credit facility on Jan. 30, according to an 8-K filing with the Securities and Exchange Commission.

Bank of America Merrill Lynch was lead arranger and bookrunner and Bank of America, NA acted as administrative agent.

Borrowings will bear interest at Libor plus 125 bps, subject to increases up to a maximum of 175 bps per year based on the company’s consolidated leverage ratio.

The borrowers also include Movado Group Delaware Holdings Corp., Movado Retail Group, Inc. and Movado LLC.

The five-year facility has a $15 million letter-of-credit subfacility.

There is an up to $50 million accordion feature.

In connection with the credit agreement, the borrowers entered into a security and pledge agreement with Bank of America.

There is a minimum consolidated EBITDA test of $50 million and a consolidated leverage ratio covenant not to exceed 2.50 to 1.00, each measured as of the last day of each fiscal quarter, the filing noted.

As of Jan. 30, no loans were drawn under the facility. However, about $3.95 million of letters of credit is outstanding. These funds were previously outstanding under the company’s now-terminated asset-based revolving credit facility.

The borrower designs, manufactures and distributes watches. Its corporate headquarters are in Paramus, N.J., and Bienne, Switzerland.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.