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Tiffany & Co. Enters Amendments To Its Global Revolving Credit Facility

Tiffany & Co. (TIF) said, on June 8, as a precautionary measure in order to maintain flexibility with respect to its liquidity sources and provide additional financial maintenance covenant headroom, it entered into amendments to its credit facility, the guaranty related to its Shanghai revolving credit facility and its various private notes. The company said these amendments primarily modify the financial ratio thresholds set forth in certain covenants included in the agreements governing these debt issuances through and including the fiscal quarter ending April 30, 2021.

At April 30, 2020, cash and cash equivalents and short-term investments totaled $1.1 billion. Total debt was $1.5 billion, which was 48% of stockholders' equity, compared to 32% a year ago. The company said this increase was primarily the result of a $500 million drawdown on the revolving credit facility during the quarter.

First quarter loss per share was $0.53 compared to profit of $1.03 per share, previous year. On average, nine analysts polled by Thomson Reuters expected the company to report profit per share of $0.03, for the quarter. Analysts' estimates typically exclude special items.

First quarter worldwide net sales declined 45% year-on-year to $556 million. Comparable sales declined 44%, for the quarter. On a constant-exchange-rate basis, net sales declined by 44% and comparable sales were down 43%. Analysts expected revenue of $700.79 million for the quarter.

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