Capri Holdings cuts revolving credit facility to $1B, extends to 2031

Capri Holdings Limited (NYSE: CPRI) amended its credit agreement on June 24, 2026, reducing its revolving credit facility from $1.5 billion to $1.0 billion while extending the maturity date to June 24, 2031, according to a company statement.

The amendment, designated as the 2026 Revolving Credit Facility, was made to the company's existing Amended and Restated Credit Agreement dated February 4, 2025, with JPMorgan Chase Bank, N.A. serving as administrative agent.

Borrowers under the facility include Capri Holdings and subsidiaries based in the U.S., Canada, Switzerland, and the Netherlands. The facility allows borrowings in U.S. dollars, euros, Canadian dollars, pounds sterling, Japanese yen, and Swiss francs.

The facility includes a sub-facility for letters of credit up to $125 million and swing line loans of up to $100 million. It is secured by liens on substantially all assets of the company and its U.S. subsidiaries, excluding real property, as well as substantially all registered intellectual property of the company and its subsidiaries.

Interest rates on borrowings are tied to benchmark rates including term SOFR, SONIA, SARON, EURIBOR, CORRA, and TIBOR, depending on the currency, plus a margin based on the company's net leverage ratio. An unused commitment fee of 10 to 20 basis points per annum also applies, based on the net leverage ratio.

The credit agreement requires Capri Holdings to maintain a net leverage ratio of no greater than 4.0 to 1 at the end of each fiscal quarter, with a provision allowing the ratio to rise to 4.5 to 1 following a material acquisition, on no more than two occasions.

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