Tapestry, Inc. Announces Commencement of Senior Unsecured Notes Offering
Tapestry (NYSE: TPR), owner of Coach, Kate Spade, and Stuart Weitzman brands, has announced a public offering of senior unsecured notes. The company plans to use the proceeds, along with available cash, to repay outstanding term loan debt and revolving credit facility borrowings that were previously used for share repurchases under accelerated share repurchase agreements. BofA Securities, Morgan Stanley, and J.P. Morgan are serving as joint lead book-running managers for the offering.
Tapestry (NYSE: TPR), proprietaria dei marchi Coach, Kate Spade e Stuart Weitzman, ha annunciato un'offerta pubblica di note senior non garantite. L'azienda prevede di utilizzare i proventi, insieme alla liquidità disponibile, per rimborsare debiti di prestiti a termine e prestiti da linee di credito revolving che erano stati precedentemente utilizzati per riacquisti di azioni nell'ambito di contratti di riacquisto accelerato. BofA Securities, Morgan Stanley e J.P. Morgan stanno fungendo da gestori in joint lead book-running per l'offerta.
Tapestry (NYSE: TPR), propietaria de las marcas Coach, Kate Spade y Stuart Weitzman, ha anunciado una oferta pública de notas senior no aseguradas. La empresa planea utilizar los ingresos, junto con el efectivo disponible, para pagar deudas de préstamos a plazo y créditos en líneas de crédito revolventes que se utilizaron previamente para recompra de acciones bajo acuerdos de recompra acelerada. BofA Securities, Morgan Stanley y J.P. Morgan están actuando como gestores conjuntos principales para la oferta.
태피스트리 (NYSE: TPR), 코치, 케이트 스페이드 및 스튜어트 와이츠만 브랜드의 소유자가 공개적으로 고위험 무담보 채권을 발행한다고 발표했습니다. 회사는 자금 조달을 위해, 사용 가능한 현금과 함께, 주식 재매입을 위해 ранее 사용했던 만기 대출 부채 및 회전 신용 시설 차입금을 상환할 계획입니다. BofA 증권, 모건 스탠리 및 JP 모건이 이번 공모를 위한 공동 주관 관리자로 활동하고 있습니다.
Tapestry (NYSE: TPR), propriétaire des marques Coach, Kate Spade et Stuart Weitzman, a annoncé une offre publique de billets de trésorerie senior non garantis. L'entreprise prévoit d'utiliser les produits, ainsi que la trésorerie disponible, pour rembourser les dettes de prêts à terme et les emprunts de facilités de crédit revolving qui avaient été précédemment utilisés pour des rachats d'actions dans le cadre d'accords de rachat accéléré. BofA Securities, Morgan Stanley et J.P. Morgan agissent en tant que responsables conjointement principaux pour l'offre.
Tapestry (NYSE: TPR), Eigentümer der Marken Coach, Kate Spade und Stuart Weitzman, hat ein öffentliches Angebot für nicht gesicherte Senior Notes angekündigt. Das Unternehmen plant, die Einnahmen sowie verfügbares Bargeld zu verwenden, um ausstehende Terminkredite und revolvierende Kreditfazilitäten, die zuvor für Aktienrückkäufe im Rahmen beschleunigter Rückkaufvereinbarungen verwendet wurden, zurückzuzahlen. BofA Securities, Morgan Stanley und J.P. Morgan fungieren als gemeinsame Hauptbuchführer für das Angebot.
- Strategic debt restructuring to optimize capital structure
- Previously executed share repurchase program indicates strong cash position
- Support from major financial institutions as lead managers
- Increasing debt levels through new notes offering
- Using debt to finance share repurchases rather than operations or growth
Insights
Tapestry's senior unsecured notes offering represents a strategic financial move to restructure its debt and support its capital allocation initiatives. The company plans to use the proceeds primarily to refinance existing term loan debt and revolving credit facility borrowings that were previously used for share repurchases.
This debt refinancing could potentially optimize Tapestry's capital structure by replacing short-term borrowings with longer-term fixed-rate debt. The timing is notable as companies often seek to lock in rates before potential market changes. The involvement of major underwriters (BofA Securities, Morgan Stanley and J.P. Morgan) suggests strong institutional backing for the offering.
The move to refinance debt used for share repurchases indicates management's confidence in the company's financial position and commitment to returning capital to shareholders. However, investors should monitor the final terms of the notes, including interest rates and maturity, to assess the impact on Tapestry's debt service costs and overall financial flexibility.
The Company intends to use the net proceeds from this offering, together with cash on hand, to repay outstanding loans under its term loan credit agreement and to repay borrowings under its revolving credit facility, which were used to fund the share repurchases under the Company’s accelerated share repurchase agreements, and for general corporate purposes.
BofA Securities, Morgan Stanley and J.P. Morgan are acting as joint lead book-running managers for the proposed offering.
Important Information
The securities described above are being offered pursuant to an automatic shelf registration statement on Form S-3 (File No. 333-276823) filed by the Company on February 1, 2024, and only by means of a prospectus supplement and accompanying prospectus. A preliminary prospectus supplement related to the offering and accompanying prospectus have been filed with the Securities and Exchange Commission (the “SEC”) and are or will be available on the SEC’s website located at http://www.sec.gov.
Copies of the preliminary prospectus supplement and the accompanying prospectus relating to these securities may be obtained from any of (i) BofA Securities, Inc., NC1-022-02-25, 201 North Tryon Street,
This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About Tapestry, Inc.
Our global house of brands unites the magic of Coach, kate spade new york and Stuart Weitzman. Each of our brands are unique and independent, while sharing a commitment to innovation and authenticity defined by distinctive products and differentiated customer experiences across channels and geographies. We use our collective strengths to move our customers and empower our communities, to make the fashion industry more sustainable, and to build a company that’s equitable, inclusive, and diverse. Individually, our brands are iconic. Together, we can stretch what’s possible. The Company’s common stock is traded on the New York Stock Exchange under the symbol TPR.
This press release may contain certain “forward-looking statements” within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are based on management’s current expectations, that involve risks and uncertainties that could cause our actual results to differ materially from our current expectations. Forward statements in this press release include, but are not limited to, the proposed offering (including the amounts and consummation thereof) and statements that can be identified by use of forward-looking terminology such as “may,” “can,” “continue,” “project,” “assumption,” “should,” “expect,” “confidence,” “goals,” “trends,” “anticipate,” “intend,” “estimate,” “on track,” “future,” “well positioned to,” “plan,” “potential,” “position,” “believe,” “seek,” “see,” “will,” “would,” “target,” similar expressions, and variations or negatives of these words. Forward-looking statements by their nature address matters that are, to different degrees, uncertain. Such statements involve risks, uncertainties and assumptions. If such risks or uncertainties materialize or such assumptions prove incorrect, our results could differ materially from those expressed or implied by such forward-looking statements and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. We assume no obligation to revise or update any such forward-looking statements for any reason, except as required by law. Our actual results could differ materially from the results contemplated by these forward-looking statements and are subject to a number of risks, uncertainties, estimates and assumptions that may cause actual results to differ materially from current expectations due to a number of factors, including, but not limited to: the impact of economic conditions, recession and inflationary measures; our exposure to international risks, including currency fluctuations and changes in economic or political conditions in the markets where we sell or source our products; our ability to retain the value of our brands and to respond to changing fashion and retail trends in a timely manner, including our ability to execute on our e-commerce and digital strategies; our ability to successfully implement the initiatives under our 2025 growth strategy; the effect of existing and new competition in the marketplace; our ability to achieve intended benefits, cost savings and synergies from acquisitions; our ability to control costs; the effect of seasonal and quarterly fluctuations on our sales or operating results; the risk of cyber security threats and privacy or data security breaches; our ability to satisfy our outstanding debt obligations or incur additional indebtedness; the risks associated with climate change and other corporate responsibility issues; the impact of tax and other legislation; the risks associated with potential changes to international trade agreements and the imposition of additional duties on importing our products; our ability to protect against infringement of our trademarks and other proprietary rights; and the impact of pending and potential future legal proceedings. These factors are not necessarily all of the factors that could cause actual results to differ materially from those expressed in any of our forward-looking statements. Please refer to the Company’s latest Annual Report on Form 10-K and its other filings with the SEC for a complete list of risks and important factors.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241203909881/en/
Media:
Andrea Shaw Resnick
Chief Communications Officer
212/629-2618
aresnick@tapestry.com
Analysts and Investors:
Christina Colone
Global Head of Investor Relations
212/946-7252
ccolone@tapestry.com
Source: Tapestry, Inc.
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