When I heard the song I thought that the laces were akin to shoe laces, and that they were tied around the letters as a way of keeping them together in a neat package. But when I asked this question here, people brought up the question of a different type of lace (the type that adorns clothing as a decoration). I hadn't thought of this. Does anyone have any other ideas as to what this line in the song could mean? Maybe Clive will help us out with a quick answer.