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RICHARDSON, Texas - Fossil Group, Inc. (NASDAQ:FOSL), the fashion accessories maker with a market capitalization of $125 million and current debt burden of $324 million, announced Thursday it has extended its exchange offer for its 7.00% Senior Notes due 2026 after receiving 82.67% of valid tenders, short of the 90% minimum requirement.
The company has moved the expiration date from October 22 to November 10, 2025, for the exchange offer, consent solicitation, and rights offering. All other terms remain unchanged. According to InvestingPro data, Fossil’s current ratio stands at 1.83, indicating sufficient liquid assets to meet short-term obligations despite ongoing restructuring efforts.
Fossil reported it received sufficient consents to adopt the UK Proceeding Amendments, which include changing the governing law of the notes to the laws of England and Wales. As a result, Fossil (UK) Global Services Ltd will proceed with an English law restructuring plan under Part 26A of the Companies Act 2006 to implement a restructuring of the notes.
According to information provided by Epiq Corporate Restructuring, LLC, the exchange agent for the transaction, approximately $124 million of the $150 million aggregate outstanding principal amount had been validly tendered as of the original expiration time. This includes $118 million from new money participants and nearly $6 million from non-new money participants.
The company has filed registration statements on Forms S-3 and S-4 with the Securities and Exchange Commission in connection with these transactions.
Fossil Group manufactures and distributes fashion accessories including watches, jewelry, and leather goods. The restructuring efforts come as the company works to strengthen its balance sheet and improve liquidity. InvestingPro analysis reveals 17 additional key insights about Fossil’s financial health and market position, available in the comprehensive Pro Research Report, which transforms complex financial data into actionable intelligence for investors.
This information is based on a press release statement issued by Fossil Group.
In other recent news, Fossil Group Inc. reported its second-quarter 2025 earnings, showing a 16% decline in net sales to $219 million, although it managed to expand its gross margin by 480 basis points to 57.4%. This follows the company’s strategic shift towards a full-price selling model and significant cost-saving initiatives. Additionally, Fossil Group announced the commencement of an exchange offer for its outstanding 7.00% Senior Notes due 2026. This offer is part of a broader debt restructuring initiative, providing noteholders options for new secured senior notes due 2029, along with warrants exercisable into company shares. Furthermore, the company has extended the expiration deadline for its exchange offer, consent solicitation, and rights offering to October 15, 2025. This extension aligns with its ongoing UK Proceeding, which may include amendments to the Indenture for its Senior Notes. Recent developments reflect Fossil Group’s efforts to manage its financial structure and adapt to market conditions.
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