Tapestry draws down $700 million under $900 million revolver

By Sarah Lizee

Olympia, Wash., March 26 – Tapestry, Inc. elected to draw down $700 million under its $900 million unsecured revolving credit facility with Bank of America, NA as administrative agent on Wednesday, according to an 8-K filing with the Securities and Exchange Commission.

At Dec. 28, the facility was undrawn and there were no letters of credit outstanding.

The draw will be funded on Monday.

Interest is Libor plus 80.5 basis points to 122.5 bps, based on leverage. The current margin is 101.5 bps.

Following the drawdown, the company had remaining borrowing capacity of $200 million under the credit agreement.

The company said it elected to borrow under the credit agreement as a precautionary measure in order to increase its cash position and preserve financial flexibility in light of current uncertainty in the global markets resulting from the Covid-19 outbreak.

The drawdown proceeds are expected to be held on the company’s balance sheet and may be used for general corporate purposes.

Tapestry is a New York-based luxury fashion company.

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