Fossil gets restated $1.05 billion revolver, $231.3 million term loan

By Tali Rackner

Norfolk, Va., March 10 – Fossil Group, Inc. entered into an amended and restated credit agreement on Monday with Wells Fargo Bank, NA as administrative agent, swingline lender and issuing lender, according to an 8-K filing with the Securities and Exchange Commission.

The agreement provides for a $1.05 billion revolving credit facility with an up to $20 million swingline loan and an up to $10 million subfacility for letters of credit as well as a $231.3 million term loan.

The credit agreement expires on May 17, 2018.

Borrowings bear interest at Libor plus 125 basis points to 200 bps, based on leverage. The commitment fee ranges from 20 bps to 35 bps.

Certain financial covenants require Fossil to maintain a maximum consolidated total leverage ratio of 2.5 to 1 and a minimum consolidated interest coverage ratio of 3.5 to 1.

Bank of America, NA and JPMorgan Chase Bank, NA are syndication agents; HSBC Bank USA, NA, Compass Bank and Fifth Third Bank are documentation agents; and Wells Fargo Securities, LLC, Merrill Lynch, Pierce, Fenner & Smith Inc., and J.P. Morgan Securities LLC are joint lead arrangers and joint bookrunners.

As of March 9, the company had $555 million of revolving credit loans and $231.3 million of term loans outstanding under the prior credit agreement, all of which was refinanced on March 9 with borrowings under the new agreement.

Fossil is a fashion accessories designer and marketer based in Richardson, Texas.

© 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.