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Michael Kors gives financing update

23 August 2017 08:06

Michael Kors Holdings - which announced an agreed recommended cash acquisition of Jimmy Choo on 25 July - has issued a financing update.

The group has given an update on the bridge credit agreement set out in the scheme document.

It said: "As of 22 August 2017, the commitments under the bridge credit agreement have been reduced to £344,189,745.19 following the entry by Michael Kors and certain other members of the Michael Kors group into a $1 billion term loan credit facility, which is provided as a separate tranche under Michael Kors's existing revolving credit facility pursuant to the second amended and restated credit agreement dated as of 22 August 2017 with, among others, JPMorgan Chase Bank, N.A. and Goldman Sachs Bank USA.

"JPMorgan Chase Bank, N.A. acts as lead arranger and Goldman Sachs Bank USA, as joint lead arranger, with JPMorgan Chase Bank, N.A. as administrative agent and Goldman Sachs Bank USA as syndication agent, with respect to the fully committed term loan financing provided thereunder.

"Subject to certain conditions, the commitments under the term loan credit facility will be available until the earlier of the date which is 120 days after completion of the acquisition and 31 January 2018, to be used to fund in part the cash consideration payable by Michael Kors Bidco to eligible Jimmy Choo shareholders in connection with the Acquisition.

"The term loan credit facility is divided into two tranches, a $600 million tranche that matures on the third anniversary of the initial borrowing date and a $400 million tranche that matures on the fifth anniversary of the initial borrowing date.

"Borrowings under the term loan credit facility will be repayable in equal quarterly instalments in an annual amount equal to 10% of the original amount of the term loans, with any principal amount outstanding due and payable on the applicable maturity date.

"The term loan credit facility is unsecured and is guaranteed by the same members of the Michael Kors group that provide guarantees with respect to the Bridge Credit Agreement."

At 8:06am:

(LON:CHOO) Jimmy Choo Plc share price was +1.2p at 229.9p

Story provided by StockMarketWire.com

Related Company: CHOO

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