Movado Group, Inc., Movado Group Delaware Holdings Corporation, Movado Retail Group, Inc. and Movado LLC Enter into Credit Agreement
Feb 5 15
On January 30, 2015, Movado Group, Inc. together with Movado Group Delaware Holdings Corporation, Movado Retail Group, Inc. and Movado LLC, entered into a credit agreement with the lenders party thereto and Bank of America, N.A. as administrative agent (in such capacity, the Agent). The Credit agreement provides for a $100.0 million senior secured revolving credit facility including a $15.0 million letter of credit subfacility, that matures on January 30, 2020, with provisions for uncommitted increases of up to $50.0 million in the aggregate subject to customary terms and conditions. In connection with the credit agreement, the borrowers entered into a security and pledge agreement dated as of January 30, 2015 in favor of the Agent. this summary does not purport to be complete and is qualified in its entirety by reference to the credit agreement and the security agreement, each of which is filed as an exhibit to this report. As of January 30, 2015, no loans were drawn under the facility; however approximately $3.95 million in letters of credit which were outstanding under the Borrower's existing asset-based revolving credit facility, which was concurrently terminated were deemed to be issued and outstanding under the facility. As of January 30, 2015, availability under the facility was approximately $96.05 million. Borrowings under the facility bear interest at rates selected periodically by the company at LIBOR plus 1.25% per annum (subject to increases up to a maximum of 1.75% per annum based on the company's consolidated leverage ratio) or a base rate plus 0.25% (subject to increase up to a maximum of 0.75% per annum based on the company's consolidated leverage ratio). The company has also agreed to pay certain fees and expenses and provide certain indemnities, all of which are customary for such financings. The borrowings under the facility are joint and several obligations of the borrowers and are also cross-guaranteed by each borrower. In addition, pursuant to the security agreement, the borrowers' obligations under the facility are secured by first priority liens, subject to permitted liens, on substantially all of the borrowers' assets other than certain excluded assets. The security agreement contains representations and warranties and covenants, which are customary for pledge and security agreements of this type, relating to the creation and perfection of security interests in favor of the agent over various categories of the company's assets. The credit agreement contains affirmative and negative covenants binding on the borrowers and their subsidiaries that are customary for credit facilities of this type, including, but not limited to, restrictions and limitations on the incurrence of debt and liens, dispositions of assets, capital expenditures, dividends and other payments in respect of equity interests, the making of loans and equity investments, mergers, consolidations, liquidations and dissolutions, and transactions with affiliates (in each case, subject to various exceptions). The borrowers are also subject to a minimum consolidated EBITDA test of $50.0 million and a consolidated leverage ratio covenant not to exceed 2.50 to 1.00, each measured as of the last day of each fiscal quarter. The credit agreement contains events of default that are customary for facilities of this type, including, but not limited to, nonpayment of principal, interest, fees and other amounts when due, failure of any representation or warranty to be true in any material respect when made or deemed made, violation of covenants, cross default with material indebtedness, material judgments, material ERISA liability, bankruptcy events, asserted or actual revocation or invalidity of the loan documents, and change of control.
Robbins Geller Rudman & Dowd LLP Files Class Action Suit Against Movado Group, Inc
Feb 4 15
Robbins Geller Rudman & Dowd LLP announced that a class action has been commenced in the United States District Court for the District of New Jersey on behalf of purchasers of Movado Group, Inc. common stock during the period between March 26, 2014 and November 13, 2014. The complaint charges Movado and certain of its officers and directors with violations of the Securities Exchange Act of 1934. The complaint alleges that during the Class Period, defendants issued materially false and misleading statements touting the purportedly attractive business prospects and strong growth expected for the company's Movado brand as well as its portfolio of licensed brands, which includes Lacoste and Scuderia Ferrari watches. Defendants also materially misled investors regarding their initiative to boost the Movado brand by cannibalizing one of the company's other brand's shelf space at various retailers. Plaintiff seeks to recover damages on behalf of all purchasers of Movado common stock during the Class Period.
Movado Group, Inc. Names Jo an Lawson as General Manager of Wearable Devices
Dec 3 14
Movado Group, Inc. announced the addition of Jo An Lawson as General Manager of Wearable Devices. Ms. Lawson, based in San Francisco, will lead the company's wearable device strategic alliance expansion initiatives, reporting to Rick Coté, Vice Chairman and Chief Operating Officer. Ms. Lawson comes to Movado with significant brand and marketing experience, having worked with technology leader Apple, Inc. for nine years. Most recently, Ms. Lawson served as a Marketing Strategist at West Studios, acting as interim VP of Marketing. In her role as General Manager of Wearable Devices at Movado Group, Ms. Lawson will be responsible for identifying unique opportunities for the company in the technology arena, and developing strategic alliances that will position the company to launch wearable device products consistent with its luxury product branding philosophy. Prior to her most recent position at West Studios, Ms. Lawson has held various technology focused marketing positions of increasing responsibility at Apple Inc. beginning in 2003, with her last position as Director, Global Retail Marketing and Brand Experience. Earlier in her career, Ms. Lawson worked at Deloitte Consulting as a Senior Consultant.