Fossil Group, Inc. Announces ABL Refinancing and Transaction Support Agreement for Debt Exchange
Fossil Group (NASDAQ:FOSL) has announced significant financial restructuring initiatives including a new $150 million asset-based revolving credit facility with Ares Management Credit funds, maturing in 2030. The company has also entered into a Transaction Support Agreement with holders of approximately 59% of its 7.00% Senior Notes due 2026.
The agreement includes an exchange offer featuring: 1) A new money investment opportunity of up to $32.5 million for new 9.5% First-Out Senior Secured Notes due 2029, 2) An option to exchange existing notes for new secured notes, and 3) Distribution of warrants for common stock. If less than 90% of noteholders participate, the restructuring may be implemented through a UK proceeding.
Fossil Group (NASDAQ:FOSL) ha annunciato una ristrutturazione finanziaria significativa, inclusa una nuova linea di credito revolving garantita da attivit脿 da 150 milioni di dollari con i fondi Ares Management Credit, con scadenza nel 2030. L'azienda ha inoltre siglato un accordo di supporto alla transazione con detentori di circa il 59% delle sue Senior Notes al 7,00% in scadenza 2026.
L'intesa prevede un'offerta di scambio che comprende: 1) una possibilit脿 di nuovo investimento fino a 32,5 milioni di dollari per nuove Senior Secured Notes First-Out al 9,5% con scadenza 2029, 2) l'opzione di convertire le note esistenti in nuove note garantite, e 3) l'assegnazione di warrant su azioni ordinarie. Se meno del 90% dei detentori partecipa, la ristrutturazione potr脿 essere attuata tramite una procedura nel Regno Unito.
Fossil Group (NASDAQ:FOSL) ha anunciado una importante reestructuraci贸n financiera, incluida una nueva l铆nea de cr茅dito renovable garantizada por activos de 150 millones de d贸lares con los fondos Ares Management Credit, con vencimiento en 2030. La compa帽铆a tambi茅n ha firmado un Acuerdo de Apoyo a la Transacci贸n con tenedores de aproximadamente el 59% de sus Senior Notes al 7,00% con vencimiento en 2026.
El acuerdo incluye una oferta de canje que contempla: 1) una oportunidad de inversi贸n de nuevo capital de hasta 32,5 millones de d贸lares para nuevas First-Out Senior Secured Notes al 9,5% con vencimiento en 2029, 2) la opci贸n de cambiar las notas existentes por nuevas notas garantizadas, y 3) la entrega de warrants sobre acciones ordinarias. Si menos del 90% de los tenedores participa, la reestructuraci贸n podr铆a ejecutarse mediante un procedimiento en el Reino Unido.
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Fossil Group (NASDAQ:FOSL) a annonc茅 d'importantes mesures de restructuration financi猫re, incluant une nouvelle facilit茅 de cr茅dit renouvelable adoss茅e 脿 des actifs de 150 millions de dollars avec les fonds Ares Management Credit, 茅ch茅ance 2030. La soci茅t茅 a 茅galement conclu un accord de soutien 脿 la transaction avec des d茅tenteurs repr茅sentant environ 59% de ses Senior Notes 脿 7,00% arrivant 脿 茅ch茅ance en 2026.
L'accord pr茅voit une offre d'茅change comprenant : 1) une possibilit茅 d'investissement en new money allant jusqu'脿 32,5 millions de dollars pour de nouvelles First-Out Senior Secured Notes 脿 9,5% 茅ch茅ance 2029, 2) une option d'茅changer les titres existants contre de nouvelles obligations garanties, et 3) la distribution de warrants sur actions ordinaires. Si moins de 90% des porteurs participent, la restructuration pourrait 锚tre mise en 艙uvre via une proc茅dure au Royaume鈥慤ni.
Fossil Group (NASDAQ:FOSL) hat bedeutende finanzielle Umstrukturierungsma脽nahmen angek眉ndigt, darunter eine neue asset-basierte revolvierende Kreditlinie 眉ber 150 Millionen US-Dollar mit Ares Management Credit Funds, f盲llig 2030. Das Unternehmen hat zudem eine Vereinbarung zur Unterst眉tzung der Transaktion mit Inhabern von rund 59% seiner 7,00% Senior Notes mit F盲lligkeit 2026 geschlossen.
Die Vereinbarung sieht ein Umtauschangebot vor, das Folgendes umfasst: 1) eine New鈥慚oney鈥慖nvestitionsm枚glichkeit von bis zu 32,5 Millionen US-Dollar f眉r neue 9,5% First鈥慜ut Senior Secured Notes mit F盲lligkeit 2029, 2) die Option, bestehende Notes gegen neue besicherte Notes zu tauschen, und 3) die Ausgabe von Warrants auf Stammaktien. Nehmen weniger als 90% der Gl盲ubiger teil, kann die Restrukturierung 眉ber ein Verfahren im Vereinigten K枚nigreich umgesetzt werden.
- Secured new $150 million ABL facility with extended maturity to 2030
- Strong support with 59% of noteholders already agreeing to restructuring
- Potential to strengthen balance sheet through debt exchange and new money investment of $32.5 million
- Opportunity for complete resolution of unsecured notes through UK proceeding if needed
- Higher interest rate on new ABL at SOFR plus 500 basis points
- Potential dilution for existing shareholders through warrant issuance
- Increased interest rate on new First-Out Notes at 9.5% compared to current 7.00%
- Risk of forced restructuring through UK proceeding if 90% participation not achieved
Insights
Fossil secures balance sheet stability through ABL refinancing and debt exchange agreement, improving liquidity while addressing upcoming maturities.
Fossil Group has executed a significant financial restructuring centered on two key components. First, the company secured a new
The debt exchange offers noteholders three components: participation in a
What's particularly notable is the backstop commitment from major creditors and the provision allowing implementation through a UK proceeding if less than
RICHARDSON, Texas, Aug. 13, 2025 (GLOBE NEWSWIRE) -- Fossil Group, Inc. (NASDAQ: FOSL) (鈥淔ossil鈥� or the 鈥淐ompany鈥�) today announced that it has refinanced its ABL and entered into a Transaction Support Agreement providing for an exchange of its outstanding notes.
- A new
$150 million asset-based revolving credit facility with Ares Management Credit funds (the 鈥淣ew ABL Facility鈥�). The new facility has a maturity date of August 13, 2030 and is priced at SOFR plus 500 basis points. - A Transaction Support Agreement with certain funds managed by HG Vora Capital Management, LLC and Nantahala Capital (collectively, the 鈥淐onsenting Noteholders鈥�), beneficially owning approximately
59% in aggregate of Fossil鈥檚7.00% Senior Notes due 2026 (鈥淯nsecured Notes鈥�).
The Company appreciates the support of its Consenting Noteholders and their decision to enter into the Transaction Support Agreement, allowing the Company to enter its next phase of growth with a strong balance sheet.
The transactions contemplated under the Transaction Support Agreement provide for an exchange offer whereby the Company will offer to holders of Unsecured Notes the opportunity to:
- Participate for a pro rata portion of a new money investment of up to
$32.5 million for new9.5% First-Out Senior Secured Notes due 2029 (鈥淔irst Out Notes鈥�) (at a purchase price equal to100% of the face amount of First Out-Notes so purchased) (the 鈥淣ew Money Investment鈥�); - Tender Unsecured Notes in exchange for either (1) if such noteholder funds the full amount of its pro rata portion of the New Money Investment, new First Out Notes, or (2)听if such noteholder does not fund its pro rata portion of the New Money Investment, new
7.5% Second-Out Senior Secured Notes due 2029 (鈥淪econd-Out Notes鈥�), in each case, at100% of the face amount of its Unsecured Notes, together with, in each case, their portion of warrants as described below (together with the New Money Investment, the 鈥淩egistered Offerings鈥�); and - Receive a pro rata portion of warrants based on the amount of Unsecured Notes exchanged into First-Out Notes or Second-Out Notes in the Registered Offerings, irrespective of participation in the New Money Investment, such warrants entitling the holders thereof to purchase shares of the Company鈥檚 common stock, par value
$0.01 (鈥淐ommon Stock鈥�) or prefunded warrants entitling the holders thereof to receive Common Stock.
Noteholders participating in the New Money Investment will also receive an amount of Common Stock in Fossil determined in accordance with the Transaction Support Agreement. The New Money Investment is backstopped by the Consenting Noteholders as set forth in the Transaction Support Agreement.
If Noteholders representing less than
Safe Harbor
This press release is not an offer to sell, or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About Fossil Group, Inc.
Fossil Group, Inc. is a global design, marketing, distribution and innovation company specializing in lifestyle accessories. Under a diverse portfolio of owned and licensed brands, our offerings include watches, jewelry, handbags, small leather goods, belts, and sunglasses. We are committed to delivering the best in design and innovation across our owned brands, Fossil, Michele, Relic, Skagen and Zodiac, and licensed brands, Armani Exchange, Diesel, Emporio Armani, kate spade new york, Michael Kors, Skechers and Tory Burch.
Cautionary Note About Forward Looking Statements
This press release contains forward-looking statements based on our beliefs and assumptions and on information currently available to us. These statements include, but are not limited to, statements regarding the success and completion of the transactions contemplated by the Transaction Support Agreement. Forward-looking statements can be identified by words such as 鈥渁nticipates,鈥� 鈥渋ntends,鈥� 鈥減lans,鈥� 鈥渟eeks,鈥� 鈥渂elieves,鈥� 鈥渆stimates,鈥� 鈥渆xpects鈥� and similar references to future periods, or by the inclusion of forecasts or projections. Examples of forward-looking statements include, but are not limited to, statements we make regarding the expected transactions described herein. Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, by their nature, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, actual results may differ materially from those contemplated by the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include the inability to complete and recognize the anticipated benefits of the transactions contemplated by the Transaction Agreement; unexpected costs related to the transactions contemplated by the Transaction Agreement; and regional, national or global political, economic, business, competitive, market and regulatory conditions and uncertainties, among various other risks. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements and risk factors discussed from time to time in the Company鈥檚 filings with the SEC, including, but not limited to, those described under the section entitled 鈥淩isk Factors鈥� in our Annual Report on Form听10-K听filed with the SEC on March 12, 2025 and subsequent filings with the SEC, which can be found at the SEC鈥檚 website at . Other risks associated with the Registered Offerings will be more fully discussed in the registration statement and/or prospectus that will be included in the registration statement that will be filed with the SEC in connection with the Registered Offerings.
For the reasons described above, we caution you against relying on any forward-looking statements, which should also be read in conjunction with the other cautionary statements that are included elsewhere in this report. Any forward-looking statement made by us in this report speaks only as of the date on which we make it. Factors or events that could cause actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law. No recipient should, therefore, rely on these forward-looking statements as representing the views of the Company or its management as of any date subsequent to the date of this press release.
| Investor Relations: | Christine Greany |
| 听 | The Blueshirt Group |
| 听 | (858) 722-7815 |
| 听 | [email protected] |
FAQ
What are the key terms of Fossil Group's (FOSL) new ABL facility?
How much of Fossil's (FOSL) existing noteholders have agreed to the Transaction Support Agreement?
What is the size of the new money investment opportunity in Fossil's (FOSL) restructuring plan?
What happens if less than 90% of Fossil (FOSL) noteholders participate in the exchange offer?
What will Fossil (FOSL) noteholders receive in the exchange offer?
