Tapestry plans to accept $500 million early tendered 2025, 2027 notes

By Rebecca Melvin

Concord, N.H., Nov. 30 – Tapestry Inc. announced the early tender results of its Nov. 15 offer to buy up to $500 million from two senior notes, according to a notice.

As of 5 p.m. ET on Nov. 29, the company received tenders of $296,608,000 principal amount of its $600 million outstanding 4.25% senior notes due 2025 (Cusip: 189754AA2) and $264,805,000 principal amount of its $600 million outstanding 4.125% senior notes due 2027 (Cusip: 189754AC8).

The company intends to accept $500 million principal amount of the validly tendered and not validly withdrawn notes in the tender offer using a waterfall methodology under which the company will accept the notes in order of acceptance priority, with the 2025 notes having the higher priority.

Settlement for the tender offer is expected to take place on Dec. 1. Holders whose notes are accepted for purchase will receive the total consideration, to be calculated at 10 a.m. ET on Nov. 30.

As previously reported, both considerations will be priced using the 1.125% U.S. Treasury due Oct. 31, 2026 and their par call dates.

The 2025 notes will be priced using a 15 basis points spread for a hypothetical total consideration of $1,085.84, and the 2027 notes will be priced using an 85 bps spread for a hypothetical total consideration of $1,102.59.

Interest will also be paid to the applicable settlement date.

Noteholders who tender their notes after the early deadline are only eligible to receive the total consideration less the $30 early tender premium.

Withdrawal rights expired as of the early deadline.

The tender offer will expire at 11:59 p.m. ET on Dec. 13.

Final settlement is expected on Dec. 15.

Dealer managers for the tender offer are BofA Securities, Inc. (888 292-0070, 980 387-3907), HSBC Securities (USA) Inc. (888 HSBC-4LM, 212 525-5552, lmamericas@ushsbc.com) and J.P. Morgan Securities LLC (866 834-4666, 212 834-4087).

D.F. King & Co., Inc. (800 714-3306, 212 269-5550, tpr@dfking.com) is the information and tender agent for the offer.

Tapestry is a New York-based luxury fashion company.

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