• Home
  • News
  • Personal Finance
    • Savings
    • Banking
    • Mortgage
    • Retirement
    • Taxes
    • Wealth
  • Make Money
  • Budgeting
  • Burrow
  • Investing
  • Credit Cards
  • Loans

Subscribe to Updates

Get the latest finance news and updates directly to your inbox.

Top News

Millionaires Are Fleeing These 10 Countries (the First Is Now in Europe)

July 10, 2025

These 5 ‘Free Trials’ Are Draining Your Bank Without Warning

July 10, 2025

Goldman Sachs Asking Junior Bankers to Confirm Loyalty

July 9, 2025
Facebook Twitter Instagram
Trending
  • Millionaires Are Fleeing These 10 Countries (the First Is Now in Europe)
  • These 5 ‘Free Trials’ Are Draining Your Bank Without Warning
  • Goldman Sachs Asking Junior Bankers to Confirm Loyalty
  • He Went From Customer to CEO of 16 Handles
  • Nvidia Hits Market Cap Milestone Before Apple, Microsoft
  • Trump admin resuming interest charges for nearly 8M student loan borrowers after Biden’s limbo
  • Big Beautiful Bill Estate Planning Ideas
  • 6 Steps to Creating a Home Inventory — Before It’s Too Late
Thursday, July 10
Facebook Twitter Instagram
FintechoPro
Subscribe For Alerts
  • Home
  • News
  • Personal Finance
    • Savings
    • Banking
    • Mortgage
    • Retirement
    • Taxes
    • Wealth
  • Make Money
  • Budgeting
  • Burrow
  • Investing
  • Credit Cards
  • Loans
FintechoPro
Home » Tapestry’s bond spreads widen on news of mostly debt-funded deal to buy Michael Kors parent
Investing

Tapestry’s bond spreads widen on news of mostly debt-funded deal to buy Michael Kors parent

News RoomBy News RoomAugust 11, 20230 Views0
Facebook Twitter Pinterest LinkedIn WhatsApp Reddit Email Tumblr Telegram

Moody’s Investors Service placed Tapestry Inc.’s Baa2 rating on review for a possible downgrade on Thursday, after the company said it’s buying Capri, the parent of Michael Kors, for about $8.5 billion in a deal that will be mostly funded with debt.

The move “reflects governance considerations, including the significant increase in debt with the Capri
CPRI,
+55.74%
acquisition and Tapestry’s new leverage target, which will drive a sustained increase relative to the company’s typical under 1x net debt/EBITDA,” Moody’s said in a statement.

The deal will be funded with bonds, term loans and balance sheet cash.

The company said it has secured $8 billion in committed bridge financing from Bank of America and Morgan Stanley. That makes it the biggest high-grade M&A financing of the year to date, according to Bloomberg, ahead of the $5.75 billion bridge loan that Nasdaq Inc.
NDAQ,
+2.08%
secured to fund its acquisition of software company Adenza from private-equity firm Thoma Bravo in June.

For more, see: Nasdaq stock suffering biggest selloff in 10 years as the deal to buy Adenza includes more than $4 billion in stock

Tapestry
TPR,
-15.93%
said it’s determined to retain its investment-grade rating by suspending share buybacks.

For more, read: Coach parent Tapestry to acquire Michael Kors parent Capri in cash deal valued at $8.5 billion

“Tapestry’s acquisition of Capri will increase its scale and customer reach by adding three valuable brands to its global luxury portfolio, while applying Tapestry’s direct-to-consumer focus and technology platform to grow profitability at Michael Kors, Versace and Jimmy Choo,” Moody’s Vice President-Senior analyst Raya Sokolyanska said.

“At the same time, the company’s new financial policy will result in materially higher leverage than in the past, and the acquisition itself will temporarily raise leverage well above the company’s under 2.5x target.”

As the following chart from data-as-a-service company BondCliQ Media Services shows, Tapestry has three outstanding bond series totaling $1.2 billion of debt. The bonds are due to mature in 2025, 2027 and 2032.


Outstanding Tapestry Inc. debt by maturity year (Total $1.2 billion). Source: BondCliQ Media Services

The next chart shows the performance of the most active bonds, the 3.05% notes that mature in March of 2032, over the last three days with spreads roughly 25 basis points wider. The news was broken late Wednesday by the Wall Street Journal. 


Tapestry Inc. historical spread performance – three day. Source: BondCliQ Media Services

The next chart shows the last 10 days when there was net selling of the bonds.


Most active Tapestry Inc. issues with net customer flow (last 10 days). Source: BondCliQ Media Services

The stock was last down 16%.

Read the full article here

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Articles

He Went From Customer to CEO of 16 Handles

Investing July 9, 2025

Barbara Corcoran Retains Staff With Wild Perks, No Turnover

Investing July 8, 2025

Jack Dorsey Announces Bitchat Messaging App

Investing July 7, 2025

101 Small Business Ideas to Match Your Personality, Investment, Skills & Goals

Investing July 6, 2025

How to Deal With Negative Articles on Google

Investing July 5, 2025

13 Jobs Without College or AI: Salaries Can Start at $70k+

Investing July 2, 2025
Add A Comment

Leave A Reply Cancel Reply

Demo
Top News

These 5 ‘Free Trials’ Are Draining Your Bank Without Warning

July 10, 20250 Views

Goldman Sachs Asking Junior Bankers to Confirm Loyalty

July 9, 20250 Views

He Went From Customer to CEO of 16 Handles

July 9, 20250 Views

Nvidia Hits Market Cap Milestone Before Apple, Microsoft

July 9, 20250 Views
Don't Miss

Trump admin resuming interest charges for nearly 8M student loan borrowers after Biden’s limbo

By News RoomJuly 9, 2025

U.S. Secretary of Education Linda McMahon explained why the Trump administration will soon resume interest…

Big Beautiful Bill Estate Planning Ideas

July 9, 2025

6 Steps to Creating a Home Inventory — Before It’s Too Late

July 9, 2025

Starbucks Wants to Remove Seed Oils From Egg Bites

July 8, 2025
Facebook Twitter Instagram Pinterest Dribbble
  • Privacy Policy
  • Terms of use
  • Press Release
  • Advertise
  • Contact
© 2025 FintechoPro. All Rights Reserved.

Type above and press Enter to search. Press Esc to cancel.