Tapestry Inc. plans to repurchase $6.1 billion in bonds that were issued for the purpose of financing its unsuccessful acquisition of Capri Holdings.
The decision to redeem the bonds at 101 cents on the dollar or euro, as specified in the bond documents, will result in losses for investors who held the bonds, as they had been trading at higher values.
This move is part of Tapestry's efforts to manage its debt obligations in light of the failed acquisition.