Tapestry ends Capri merger, pays $45 million expenses and authorizes $2 billion buyback
Tapestry and Capri Holdings terminated their merger agreement under a Termination Agreement dated November 13, 2024, with no break fee according to the press release. Tapestry will reimburse Capri's expenses of $45,088,675 and redeem the senior notes issued to fund the deal, which the company says total $6.1 billion, at 101% of principal, and expects to record about $57.1 million in unamortized costs and a $61.1 million redemption premium in its second fiscal quarter of 2024. The board also authorized a new $2.0 billion share repurchase program, on top of $800 million remaining from a May 2022 authorization.
- Merger agreement terminated effective immediately under a Termination Agreement dated November 13, 2024.
- Tapestry to reimburse Capri expenses of $45,088,675 in cash on November 14, 2024.
- Notes to be redeemed at 101% of principal on or about November 25, 2024, with about $57.1 million unamortized costs and a $61.1 million premium recognized in fiscal Q2 2024.
- Board authorized a new $2.0 billion buyback; the fiscal 2025 outlook was reaffirmed and the annual dividend rate of $1.40 per share is expected to be maintained.