Tapestry On the Hook for M&A Bonds If FTC Blocks Capri Deal

Tapestry Inc., a luxury goods conglomerate whose brands include Coach and Kate Spade, could have to pay investors billions of dollars if the Federal Trade Commission decides to block its $8.5 billion planned takeover of its rival, Capri Holdings Ltd.

Should the deal not close, Tapestry would have to redeem bonds it sold last year, according to the terms of the issues. The use of proceeds for $4.5 billion of US investment-grade debt and 1.5 billion euros ($1.6 billion) of bonds sold in November were set to finance a portion of the Capri acquisition. Outstanding notes must be ...