AI English summary of an SEC filing — figures as filed
Tapestry TPROn Tuesday, November 21, 2024, Tapestry entered into accelerated share repurchase (ASR) agreements with Bank of America, N.A. and Morgan Stanley & Co. LLC to repurchase up to $2.0 billion of its common stock. The company said it will pay $2.0 billion on November 26 and will receive an initial delivery of 28,363,766 shares the same day.
Key points
AI summaryOn Tuesday, November 21, 2024, Tapestry entered into accelerated share repurchase (ASR) agreements with Bank of America, N.A. and Morgan Stanley & Co. LLC to repurchase up to $2.0 billion of its common stock. The company said it will pay $2.0 billion on November 26 and will receive an initial delivery of 28,363,766 shares the same day.
Tapestry said the final number of shares to be repurchased will be based on the daily volume-weighted average price of its stock on specified dates during each ASR agreement's term, less a discount, and subject to adjustments under the agreements' terms. The company said final settlement is scheduled to occur no later than the first quarter of fiscal 2026, ending September 27, 2025.
The company said it is funding the ASR share repurchases with $750.0 million of borrowings under a new term loan, approximately $1.0 billion of borrowings under its revolving credit facility, and cash on hand. It said it expects to refinance the term loan with new debt or borrowings under other existing sources of liquidity, together with cash on hand.
The company said the $750.0 million senior unsecured term loan matures 6 months after the funding date and bears interest at Term SOFR plus 1.125%. The company said that after the ASR agreements, there will be $800.0 million of availability for share repurchases under the program authorized by its board in May 2022.
Summary
AI-writtenAnalysis scope · Filing body and confirmed press-release exhibitWe analyzed the filing body and confirmed exhibits. This is not a review of other exhibits, investor presentations or the full earnings call.
Tapestry Enters $2.0 billion Accelerated Share Repurchase Agreements
On Tuesday, November 21, 2024, Tapestry entered into accelerated share repurchase (ASR) agreements with Bank of America, N.A. and Morgan Stanley & Co. LLC to repurchase up to $2.0 billion of its common stock. The company said it will pay $2.0 billion on November 26 and will receive an initial delivery of 28,363,766 shares the same day.
Source · Based on the filing body and exhibits
ASR Final Share Count Method and Settlement Timing
Tapestry said the final number of shares to be repurchased will be based on the daily volume-weighted average price of its stock on specified dates during each ASR agreement's term, less a discount, and subject to adjustments under the agreements' terms. The company said final settlement is scheduled to occur no later than the first quarter of fiscal 2026, ending September 27, 2025.
Source · Based on the filing body and exhibits
$750.0 million New Term Loan and Funding Mix
The company said it is funding the ASR share repurchases with $750.0 million of borrowings under a new term loan, approximately $1.0 billion of borrowings under its revolving credit facility, and cash on hand. It said it expects to refinance the term loan with new debt or borrowings under other existing sources of liquidity, together with cash on hand.
Source · Based on the filing body and exhibits
Term Loan Maturity, Interest Rate and Remaining Buyback Capacity
The company said the $750.0 million senior unsecured term loan matures 6 months after the funding date and bears interest at Term SOFR plus 1.125%. The company said that after the ASR agreements, there will be $800.0 million of availability for share repurchases under the program authorized by its board in May 2022.
Source · Based on the filing body and exhibits
AI summarized the filing and translated the summary into English; it may differ from the original. For reference only, not investment advice. AI translated the published Korean report into English. Figures are copied as filed, not recalculated.
Original filing
The filing as submitted to SEC EDGAR. You can check the figures and statements of this summary against it.
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