Tapestry prices offer to buy 2025, 2027 notes, gives early tender tally

By Rebecca Melvin

Concord, N.H., Nov. 30 – Tapestry Inc. announced pricing of its offer to purchase up to $500 million from two senior notes, according to a notice on Tuesday.

Earlier in the session the company announced the early tender results of the Nov. 15 offer. It 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).

Tapestry is offering to buy the 2025 notes at $1,090.31 per $1,000 principal amount of notes. The price was determined by using the 1.125% U.S. Treasury due Oct. 31, 2026’s 1.105% reference yield plus 15 basis points.

It is also offering to buy the 2027 notes at $1,110.15 per $1,000 principal amount, which was determined by using the same 1.105% Treasury reference yield plus 85 bps.

Pricing was determined at 10 a.m. ET on Nov. 30.

The offer expires at 11:59 p.m. ET on Dec. 13, with final settlement expected on Dec. 15.

As previously reported, the company intended to accept $500 million principal amount of the validly tendered and not validly withdrawn notes in the tender offer using a waterfall methodology under which the notes were accepted in order of acceptance priority.

Settlement for the tender offer is expected to take place on Dec. 1, when the company also expects to price $500 million of new 3.05% notes due 2032.

Interest will also be paid to the 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.

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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