Tapestry's $303 Million Trading Day Lands 270th in Rankings Amid Stock Decline

On May 23, 2025, Tapestry (TPR) experienced a significant trading volume of $303 million, marking a 35.76% increase from the previous day. This surge placed Tapestry at the 270th position in the day's stock market rankings. However, the stock price declined by 2.68%, marking the third consecutive day of decline, with a total decrease of 6.85% over the past three days.

Tapestry, Inc. recently announced a new $2 billion unsecured revolving credit facility, effective from May 22, 2025. This strategic financial move involves collaboration with Bank of America, N.A. as the administrative agent, alongside a syndicate of banks and financial institutions. The new facility is designed to support the company's working capital needs, capital expenditures, permitted investments, share purchases, dividends, and other general corporate purposes. It includes sub-facilities for letters of credit and swing line loans, providing enhanced financial flexibility.

The new credit facility matures on May 22, 2030, and offers Tapestry the option to increase the revolving commitments by up to $750 million, subject to certain conditions. The facility allows for borrowings in multiple currencies, including Euros, Pounds Sterling, Japanese Yen, and U.S. Dollars. The interest rates for borrowings are determined based on various benchmarks, with an applicable margin adjusted according to Tapestry's consolidated debt to EBITDAR ratio. The agreement also includes provisions for optional prepayments and commitment reductions without premium or penalty, allowing Tapestry to manage its debt efficiently.

This new credit facility underscores Tapestry's commitment to maintaining a robust financial structure, providing the necessary liquidity to support its strategic initiatives and growth objectives. The company's proactive approach in securing this facility reflects its focus on financial stability and operational flexibility in a dynamic market environment.