Movado Group extends $100 million revolving credit facility to 2023

By Sarah Lizee

Olympia, Wash., Oct. 12 – Movado Group, Inc. and its subsidiaries amended and restated their credit agreement on Friday, extending the maturity of the $100 million senior secured revolving credit facility to Oct. 12, 2023, according to an 8-K filing with the Securities and Exchange Commission.

The revolver includes a $15 million letter-of-credit subfacility, a $25 million swingline subfacility and a $75 million sublimit for borrowings by subsidiaries Movado Watch Co. SA and MGI Luxury Group SA, with provisions for uncommitted increases to the facility of up to $50 million.

Borrowings bear interest at Libor plus 100 basis points. The interest rate is subject to increases that could bring the rate up to Libor plus 175 bps, based on the consolidated leverage ratio.

No loans were drawn as of Monday, but about $290,000 in letters of credit that were outstanding under the existing credit agreement are deemed to be issued and outstanding under the current facility.

Availability was about $99.71 million as of Monday.

The borrowers are subject to a minimum four quarters’ consolidated EBITDA test of $50 million and a consolidated leverage ratio covenant not to exceed 2.5 to 1, each measured as of the last day of each fiscal quarter.

Movado designs, manufactures and distributes watches. Its corporate headquarters are in Paramus, N.J., and Bienne, Switzerland.

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