Michael Kors amends credit facility for new notes, high-grade ratings

By Susanna Moon

Chicago, Oct. 5 – Michael Kors Holdings Ltd. amended its senior unsecured credit facility on Wednesday with JPMorgan Chase Bank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The loan terms were amended so that if the company issues new notes, then the company’s bridge credit facility will be terminated.

Also if the company receives an investment-grade debt rating from S&P Global Ratings, Moody’s Investors Service and Fitch Ratings, then the covenant terms will be terminated requiring the company and the other borrowers and guarantors to provide customary liens on their assets to secure their obligations under the credit facility if the company does not maintain an investment-grade public debt rating from at least two of the rating agencies.

The company also said on Thursday that Michael Kors (USA), Inc., a wholly owned subsidiary of the company, plans offering of senior notes with proceeds to be used to help finance the company’s pending acquisition of Jimmy Choo plc.

The company also noted on Aug. 23 that it had reduced the commitments under its 364-day bridge loan to £344,189,745.19 from £1,115,000,000 after obtaining a $1 billion term loan and amended revolving credit facility.

Michael Kors (USA) is a New York-based designer and manufacturer of clothing, accessories and footwear.

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