Fossil enters restated $425 million term loan, $325 million revolver

By Wendy Van Sickle

Columbus, Ohio, Jan. 30 – Fossil Group, Inc. entered into a second amended and restated credit agreement on Monday, providing for a $325 million revolving credit facility and a $425 million term loan, according to an 8-K filing with the Securities and Exchange Commission.

The credit agreement expires on Dec. 31, 2020.

Wells Fargo Securities, LLC, Bank of America Merrill Lynch and JPMorgan Chase Bank, NA are the joint lead arrangers and joint bookrunners. Wells Fargo Bank, NA is the administrative agent, Bank of America, NA and JPMorgan the syndication agents and HSBC Bank USA, NA, Compass Bank and Fifth Third Bank the documentation agents.

Availability under the revolver is subject to a borrowing base, and revolving borrowings may be made in U.S., Australian, Canadian or Hong Kong dollars, euros or pound sterling. There is a 60% sublimit for currencies other than U.S. dollars.

Revolver borrowings will bear interest at Libor plus an initial margin of 450 basis points, with the margin subject to range from 400 bps to 500 bps, depending on average excess availability.

There is an annualized 50 bps commitment fee on the average daily unused portion of the revolver.

The term loan will bear interest at Libor plus a margin of 700 bps initially. The margin will step up to 800 bps on the first anniversary of the closing date and to 900 bps on the second anniversary.

The term loan principal must be repaid in amounts of $25 million on March 31, 2018, $125 million on March 31, 2019 and $75 million on March 31, 2020, with the balance due at maturity.

Fossil must comply with a maximum leverage ratio, a fixed-charge coverage ratio, a minimum trailing twelve-month EBITDA and a minimum liquidity covenant.

The credit agreement amends and restates the company’s credit agreement originally dated March 9, 2015. As of closing of the new agreement, there were no term loans outstanding under the previous agreement and $497 million in outstanding revolving borrowings, which was refinanced under the new agreement.

Future borrowings may be used for working capital.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.