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Get filing alertsCapri cuts revolving credit facility by $500M to $1.0B, extends maturity to 2031
Filed June 25, 2026 · Period ending June 24, 2026 · ~1 min read
Key Changes
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high
Reduced revolving credit facility from $1.5B to $1.0B while extending maturity to June 2031, suggesting lower borrowing needs and improved cash generation.
Item 1.01 — Entry into a Material Definitive Agreement verify on EDGAR → -
high
Must maintain net leverage ratio at or below 4.0x each quarter, with temporary increase to 4.5x allowed for up to two material acquisitions.
Item 1.01 — Entry into a Material Definitive Agreement verify on EDGAR → -
medium
Facility secured by substantially all company assets including intellectual property (brand names and trademarks), giving lenders priority claims.
Item 1.01 — Entry into a Material Definitive Agreement verify on EDGAR → -
medium
Interest rates tied to SOFR plus margin based on leverage ratio, incentivizing debt reduction as borrowing costs decrease with lower leverage.
Item 1.01 — Entry into a Material Definitive Agreement verify on EDGAR →
Summary
Capri Holdings amended its credit agreement to reduce its revolving credit facility by one-third, from $1.5 billion to $1.0 billion, while extending the maturity date five years to June 2031. The downsizing. The stated maturity is a straight roll-over of the prior facility at the same principal amount.
The facility remains secured by substantially all of Capri's assets, including its valuable intellectual property such as brand names and trademarks. The amendment maintains a net leverage ratio covenant of 4.0x, with the ability to temporarily increase to 4.5x following material acquisitions (limited to two occasions).
Interest rates are tied to benchmark rates plus a margin that varies with Capri's leverage, creating a financial incentive to reduce debt. For retail holders, this is a routine refinancing that extends liquidity runway while signaling management's confidence in reduced borrowing needs. The smaller facility size and extended maturity provide financial flexibility without materially changing the company's capital structure or risk profile.
Section-by-Section Diff
Event · Item 1.01 — Entry into a Material Definitive Agreement
Item 1.01 — Entry into a Material Definitive Agreement filed; see Key Changes for terms.
Added in current filing · verify on EDGAR →
Borrowings under the 2026 Revolving Credit Facility ... bear interest, at the Company’s option, at (i) for loans denominated in U.S. Dollars, (A) an alternate base rate (the “Alternate Base Rate”), which is the greatest of (x) the prime rate publicly announced from time to time by JPMorgan Chase, (y) the greater of the federal funds effective rate and the Federal Reserve Bank of New York overnight bank funding rate and zero, plus 50 basis points, and (z) the greater of term SOFR for an interest period of one month and zero, plus 100 basis points or (B) the greater of term SOFR for the applicable interest period and zero; ... in each case, plus an applicable margin based on the Company's net leverage ratio.
The facility offers multiple interest rate options tied to benchmark rates (SOFR for USD, SONIA for GBP, EURIBOR for EUR, etc.) plus a margin based on Capri's net leverage ratio. This structure means borrowing costs will vary with both market rates and the company's leverage profile, incentivizing debt reduction.
Added in current filing · verify on EDGAR →
The Credit Agreement continues to require the Company to maintain a net leverage ratio as of the end of each fiscal quarter of no greater than 4.0 to 1; provided, that on no more than two occasions, if the Company consummates a material acquisition, the Company may elect to increase the covenant level to 4.5 to 1 for the four fiscal quarter period commencing with the fiscal quarter in which such material acquisition is consummated.
Capri must maintain a net leverage ratio (debt plus capitalized operating leases minus up to $200 million cash, divided by EBITDAR) of 4.0x or less each quarter. The company can temporarily increase this to 4.5x for one year following a material acquisition, but only twice. This covenant constrains how much debt Capri can carry relative to its earnings.
Show 1 minor / wording change
Added in current filing · verify on EDGAR →
The 2026 Revolving Credit Facility provides for an annual administration fee and an unused commitment fee equal to 10.0 basis points to 20.0 basis points per annum, based on the Company’s net leverage ratio, applied to the average daily unused amount of the 2026 Revolving Credit Facility. Borrowings under the 2026 Revolving Credit Facility may be prepaid and the commitments may be terminated or reduced by the borrowers without premium or penalty other than customary “breakage” costs.
Capri pays a fee of 10-20 basis points annually on the unused portion of the facility, with the rate tied to its leverage ratio. The company can prepay borrowings or reduce commitments without penalty, providing flexibility to manage its capital structure as cash flow permits.
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Figures/quotes linked to EDGAR · Narrative written by AI · Jun 25, 2026 · How we verify