Tapestry refinances with new $900 million five-year revolver

By Sarah Lizee

Olympia, Wash., Oct. 25 – Tapestry, Inc. refinanced and replaced its existing revolving credit facility on Thursday, providing for a new $900 million revolver due Oct. 24, 2024, according to an 8-K filing with the Securities and Exchange Commission.

Bank of America, NA is the administrative agent.

The revolver includes sub-facilities for up to $125 million of letters of credit and up to $20 million of swingline loans.

Proceeds may be used to finance working capital needs, capital expenditures, permitted investments, share purchases, dividends and other general corporate purposes of the company and its subsidiaries.

Initially, only Tapestry will be a borrower under the revolver, but foreign subsidiaries may become borrowers later.

Revolving commitments may be increased by up to $300 million, subject to some terms and conditions.

Loans may be made at the borrowers’ election in dollars, euros, pounds sterling or yen.

Interest will be Libor plus a margin based on the ratio of consolidated debt to consolidated EBITDAR.

The company will also pay facility fees based on the same terms.

Loans may be prepaid and commitments may be terminated or reduced without premium or penalty, other than customary breakage costs.

The company and its subsidiaries must also comply on a quarterly basis with a maximum leverage ratio of 4x.

Tapestry is a New York-based luxury fashion company.

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