On May 19, 2020 (the “Effective Date”), Tapestry, Inc. (the “Company”) entered into Amendment No. 1 (the “Amendment”) to the revolving credit facility (the “Revolving Credit Facility”), dated as of October 24, 2019, among the Company, as borrower, Bank of America, N.A., as administrative agent (the “Administrative Agent”), and a syndicate of banks and financial institutions (collectively, the “Lenders”). Under the terms of the Amendment, during the period from the Effective Date until October 2, 2021, the Company must maintain available liquidity of $700 million (with available liquidity defined as the sum of unrestricted cash and cash equivalents and available commitments under credit facilities, including the Revolving Credit Facility). Following the period from the Effective Date until the compliance certificate is delivered for the fiscal quarter ending July 3, 2021 (the “Covenant Relief Period”), the Company must comply on a quarterly basis with a maximum net leverage ratio of 4.0 to 1.0. In addition, the Amendment provides that during the Covenant Relief Period, if any two of the Company’s three credit ratings are non-investment grade, the Revolving Credit Facility will be guaranteed by the Company’s material domestic subsidiaries and will be subject to liens on accounts receivable, inventory and intellectual property, in each case subject to customary exceptions. The Amendment also contains negative covenants that limit the ability of the Company and its subsidiaries to, among other things, incur certain debt, incur certain liens, dispose of assets, make investments, loans or advances, and engage in share buybacks during the Covenant Relief Period. An increased interest rate will be applicable during the Covenant Relief Period when the Company’s gross leverage ratio exceeds 4.0 to 1.0. The $900 million aggregate commitment amount under the revolving credit facility remains unchanged. As of May 20, 2020, $700 million of borrowings were outstanding under the Revolving Credit Facility.
Tapestry 8-K Shows Co. Entered Amendment To Revolving Credit Facility
On May 19, 2020 (the “Effective Date”), Tapestry, Inc. (the “Company”) entered into Amendment No. 1 (the “Amendment”) to the revolving credit facility (the “Revolving Credit
Benzinga · 05/20/2020 21:00