Fossil Group, Inc. announced on September 9, 2025, the commencement of an exchange offer, consent solicitation, and rights offering related to its outstanding 7.00% Senior Notes due 2026. This comprehensive transaction aims to restructure the company's debt obligations. Holders of the Old Notes can exchange them for new First-Out First Lien Secured Senior Notes due 2029 or Second-Out Second Lien Secured Senior Notes due 2029, along with warrants.
Concurrently, the company is soliciting consents from holders to amend the indenture governing the Old Notes, which includes removing or modifying certain covenants and subordinating the Old Notes to the New Notes. Holders who tender their Old Notes and provide consents will receive a consent premium of $1.0 million in face amount of New Notes. This is a critical step in strengthening the balance sheet.
A rights offering is also being launched to holders of Old Notes, allowing them to subscribe for First-Out Notes in a new money financing. Supporting Holders, who collectively hold approximately 60% of the Old Notes, have agreed to participate in the new money financing and exchange their notes. The exchange offer is set to expire on October 7, 2025, with provisions for a UK Proceeding if conditions are not met.
These transactions are being effected pursuant to registration statements filed with the SEC and are conditional upon their effectiveness and other factors. The goal is to address upcoming debt maturities and improve the company's capital structure, providing long-term financial stability. This initiative is a direct follow-up to the previously announced Transaction Support Agreement.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.