Capri Holdings Ltd 8-K

What Happened

• On June 24, 2026 Capri Holdings Limited filed an 8-K reporting Amendment No. 1 to its Amended and Restated Credit Agreement (originally dated Feb. 4, 2025). The amendment replaces the prior revolving commitments, reducing the aggregate revolving facility from $1.5 billion to $1.0 billion and extends the maturity of those commitments to June 24, 2031 (the “2026 Revolving Credit Facility”). JPMorgan Chase Bank, N.A. is the administrative agent.
• The facility names the Company and certain subsidiaries (including a U.S., Canadian, Swiss and Dutch borrower; examples include Michael Kors (USA), Inc. and Michael Kors (Switzerland) GmbH) as borrowers and is guaranteed by those borrowers and other guarantor subsidiaries. Borrowings can be in USD, EUR, CAD, GBP, JPY or CHF. The facility is secured by liens on substantially all assets of the Company and its U.S. borrower/guarantor subsidiaries (excluding certain real property) and by substantially all registered intellectual property.

Key Details

• Revolving commitments reduced from $1.5 billion to $1.0 billion; maturity extended to June 24, 2031.
• Letters of credit sub-facility up to $125 million; swing line loans up to $100 million (at agent’s discretion).
• Interest: borrower’s choice of Alternate Base Rate or term SOFR (and currency-specific reference rates for non-USD loans) plus a margin that varies with the Company’s net leverage ratio.
• Fees: annual administration fee and unused commitment fee of 10–20 basis points per annum, based on net leverage.
• Financial covenant: net leverage ratio not to exceed 4.0x Consolidated EBITDAR (can be increased to 4.5x for up to four fiscal quarters on up to two occasions following a material acquisition).
• Agreement includes customary covenants and events of default; lenders may accelerate and enforce collateral on default.

Why It Matters

• Liquidity: the company’s committed revolving liquidity is now $1.0B vs. the prior $1.5B, reducing available committed funding capacity.
• Duration and flexibility: extending the maturity to 2031 provides a longer runway for financing, but the facility is secured and contains leverage and other covenants that affect financial flexibility.
• Investor impact: this creates a direct financial obligation and preserves access to multi-currency borrowing, letters of credit and swing loans while tying the company to customary collateral and covenant protections for lenders. Investors should note the leverage covenant and secured nature of the facility when evaluating capital allocation and risk.

Reference: Amendment No. 1 to the Amended and Restated Credit Agreement filed as Exhibit 10.1 to the 8-K.