Tory Burch Takes Further Steps to Repurchase Shares From Private Equity

Tory Burch is getting closer to repurchasing shares of the company from private equity group General Atlantic for an estimated $346 million, according to Bloomberg.  General Atlantic bought an undisclosed stake in the company in 2012 from Tory’s ex-husband, Chris Burch, as part of the settlement of a year-old legal battle between the couple tied to Chris’s launch of Tory Burch knockoff brand C. Wonder.

Chris Burch

To finance the buyback (and other corporate initiatives), Tory Burch is taking out a $700 million leveraged loan with Bank of America.

As a result of the financing, Tory Burch is adding $127 million of incremental dept, according to S&P Global Ratings. Although S&P says Tory Burch “has a track record of using debt to buy out owners” and managing its debt conservatively, the forthcoming debt has other financial institutions anticipating a downturn in the company’s financial growth potential — at least in the near future.