As I have been awaiting new data points for recently completed secured debt refinancings in the retail brick and mortar space, SA Contributor Casita Capital was nice enough to point out that yesterday Fossil Group, Inc. (NASDAQ:FOSL) announced an amendment and extension to its secured credit facility.
Per the 8-K filed yesterday (see here), Fossil Group extended this facility, which was set to expire on May 17, 2019, to December 31, 2020. This refinancing didn't come cheaply, as the lenders pushed for aggressive terms to be compensated for the sorry state of affairs Fossil Group finds itself, at least looking at the numbers.
Essentially here is what the refinancing looks like:
The Credit Agreement provides for (i) revolving credit loans available to the Company and the non-U.S. Borrowers in the amount of $325 million (the "Revolving Credit Facility"), subject to a borrowing base (as described below), with an up to $45.0 million subfacility for letters of credit, and (ii) a term loan made to the Company in the amount of $425 million (the "Term Loan Facility"). The Credit Agreement expires and is due and payable on December 31, 2020.
The $325 million Revolver is LIBOR +400 bps to 500 bps.
See the fine print:
Amounts outstanding under the Revolving Credit Facility will bear interest per annum at the (A) LIBOR rate plus the applicable interest margin, (B) the daily LIBOR rate plus the applicable interest margin or (C) the base rate plus the applicable interest margin. The applicable interest margin varies from 4.00% to 5.00% for LIBOR rate loans and daily LIBOR rate loans and 1.50% to 3.00% for base rate loans and is based on the Company's average daily excess availability under the Revolving Credit Facility for the most recently ended calendar quarter, which is an amount equal (A) the lesser of (i) $325 million and (ii) the aggregate borrowing base minus (B) the amount of all outstanding borrowings
