Fossil Group increases revolver borrowings as precautionary measure

By Sarah Lizee

Olympia, Wash., March 27 – Fossil Group, Inc. and its subsidiary borrowers provided notice to JPMorgan Chase Bank, NA as administrative agent to increase borrowings under its $275 million revolving credit facility, effective March 30, according to an 8-K filing with the Securities and Exchange Commission.

The revolver includes $160 million under a U.S. facility, $70 million under a European facility, $30 million under a Hong Kong facility, $10 million under a French facility and $5 million under a Canadian facility, in each case subject to the borrowing base availability limitations.

Specifically, the borrowers provided notice for an alternate base rate borrowing of $71 million under the U.S. facility, $10 million under the Hong Kong facility and €19 million under European facility.

The borrowers may repay amounts borrowed any time without penalty.

The company increased its borrowings as a precautionary measure to increase its cash position, provide liquidity for a sustained period and to preserve financial flexibility in light of current uncertainty in the global markets resulting from the Covid-19 outbreak, the filing said.

Fossil is a fashion accessories designer and marketer based in Richardson, Tex.

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