Fossil Group (FOSL) has announced their intention to sell a new issue of $25 senior notes with a maturity date in 2026.
The notes will have an early redemption available starting on 11/30/2023 on a sliding scale of redemption prices starting at $25.50 with a 25 cent reduction on 11/30/2024 and then on 11/30/2025 at $25/share (bond) with final maturity at 11/30/2026.
The plan is to sell $125,000,000 in notes and to list the shares on NASDAQ.
The preliminary prospectus is here.
af was right on top of this new issue.
5 thoughts on “Fossil Group to Sell Baby Bonds”
Fossil Group raises $140M debt capital
Nov. 04, 2021 6:54 AM ETFossil Group, Inc. (FOSL)By: Niloofer Shaikh, SA News Editor
Fossil Group (NASDAQ:FOSL) has priced upsized public offering of $140M (from $125M) of 7.00% Senior Notes due 2026.
Underwriters’ granted a 30-day option to purchase an additional $10M of the Notes.
The offering is expected to close on November 8.
The company has applied to list the Notes on Nasdaq under the symbol “FOSLL”.
Net proceeds will be used to repay outstanding borrowings under the company’s Term Credit Agreement.
Here’s a quick look at the Earnings Per Share;
Fossil Quarterly EPS
Announced: Fossil Group, Inc. $25 par Senior Notes
Issuer: Fossil Group, Inc. (Nasdaq: FOSL)
Securities: Senior Unsecured Notes due 2026
Size: $125 million
Overallotment Option: $5 million
Offering Price: $25 Par
Pricing: 7.00% – 7.50%
Maturity: The Notes will mature on November 30, 2026, unless redeemed prior to maturity.
Pay Dates: Payable quarterly in arrears on February 28, May 31, August 31 and November 30 of each year, commencing on February 28, 2022, and at maturity.
Record Date: The Issuer will pay interest to the person listed in the trustee’s records as the owner of the Notes at the close of business on the record date for the applicable interest payment date, even if that person no longer owns the Note on the interest payment date.
Optional Redemption: The Issuer may redeem the Notes for cash in whole or in part at any time at its option. Prior to November 30, 2023, the redemption price will be $25.00 per $25.00 principal amount of Notes, plus a “make-whole” premium calculated as described in the prospectus supplement, plus accrued and unpaid interest, if any, to, but excluding, the date of redemption. On and after November 30, 2023, the Issuer may redeem the Notes (i) on or after November 30, 2023 and prior to November 30, 2024, at a price equal to $25.50 per $25.00 principal amount of Notes, plus accrued and unpaid interest, if any, to, but excluding, the date of redemption, (ii) on or after November 30, 2024 and prior to November 30, 2025, at a price equal to $25.25 per $25.00 principal amount of Notes, plus accrued and unpaid interest, if any, to, but excluding, the date of redemption, and (iii) on or after November 30, 2025, at a price equal to $25.00 per $25.00 principal amount of Notes, plus accrued and unpaid interest, if any, to, but excluding, the date of redemption.
Expected Issue Rating: B (S&P Global Ratings)
Use of Proceeds: The Issuer intends to use the net proceeds from the sale of the Notes to repay outstanding borrowings under the Company’s Term Credit Agreement, dated as of September 26, 2019.
Expected Listing: Nasdaq under the symbol FOSLL
Book-Running Managers: B. Riley Securities, Janney Montgomery Scott, Ladenburg Thalmann, William Blair
Lead Manager: InspereX
Co-Managers: Aegis Capital Corp., Alexander Capital, Colliers Securities, Huntington Capital Markets, Revere Securities, Wedbush Securities
Expected Pricing: 11/3/21
Title of Call: Fossil Baby Bond Call
Date and Time: Monday November 01, 2021 / 10:30 AM ET
** Please dial in at least 5 minutes early to minimize your processing and ensure an on-time admittance into the call.
Participant US Local / Intl 1: +1 (929) 272-1574
Participant US Local / Intl 2: +1 (857) 999-3259
Participant US Toll Free: +1 (800) 528-1066
Conference ID: 7093
A few items popped out on a quick look:
– IMHO, not much term left in the name brand licensing rights, mostly 2023-2025.
– Couldn’t find enough discussion on brick and mortar stores. Lease expirations, liabilities, store numbers, etc. (“Our vision is…become a digital-first organization.” and “we will continue to rationalize our retail store base.”)
– Looking to Asia for on-line growth.
– “We may redeem the Notes for cash in whole or in part at any time at our option” (with stated premium.)
– Products imported from China are subject to retaliatory trade tariffs.
– Operations appear to be recovering, current quarter year to year vs 2020.
Just my opinion.
First blush, doesn’t this look to be too high grade for RILY to be underwriting comparatively speaking???????? ha