(RTTNews) - Tapestry, Inc. (TPR), a fashion company, announced on Friday that it has entered into Accelerated Share Repurchase or ASR agreements with Bank of America N.A. and Morgan Stanley & Co. LLC or dealers to repurchase its $2 billion shares of shares.
The ASRs will be completed under the company's recently expanded $2.8 billion share repurchase authorization.
To fund the ASR, Tapestry will use $750 million of borrowings under a new term loan, $1 billion of borrowings under its revolving credit facility, and $250 million in cash on hand.
Under the ASR, Tapestry will pay $2 billion to the dealers and expects to receive an initial delivery of 28.4 million shares on November 26, or around 80 percent of the shares to be repurchased under the ASR.
The final settlement of the transactions under the ASR deal is expected to occur no later than the first quarter of fiscal 2026 ending September 27, 2025.
In addition to the ASR program, the company noted that it has $800 million of capacity remaining under its share repurchase authorization for incremental share repurchases over time.
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