Why Fossil Stock Skyrocketed Today

Shares of Fossil (NASDAQ: FOSL) have skyrocketed today, up by 26% as of 11:30 a.m. EDT, after the company disclosed on Friday evening after the close that it had amended its credit facility. The amendments should give the accessory maker more flexibility as it copes with the COVID-19 pandemic that has crushed many retailers.

Fossil's lenders have agreed to waive quarterly tests for the company's maximum total leverage ratio for fiscal 2020 as well as the first three quarters of fiscal 2021. However, the debt covenants will still require Fossil to maintain specified minimum levels of EBITDA. Minimum monthly liquidity levels have been reduced from $150 million to $125 million, and certain prepayment fees will be waived for approximately three months.

Image source: Fossil.

Source Fool.com