Birks Group signed a five-year $32.5 million senior secured term loan facility with 1903P Loan Agent, an affiliate of Gordon Brothers and the designated administrative agent under the facility. The new term loan, which matures in June 2031, refinances the company’s existing $26 million senior secured term loan credit facility which has been repaid in full.
Contemporaneously with the closing of the term loan with Gordon Brothers, the company entered into an amendment and extension of its senior secured revolving credit facility with Wells Fargo Canada, extending the maturity date until June 2031 and providing for total commitments of $93 million, an increase of $3 million. The new and amended financing provides the company with increased liquidity, enhanced financial flexibility and extended debt maturities, while continuing to support the execution of its strategic initiatives, including investments in store renovations, omni-channel capabilities, digital commerce initiatives and working capital requirements.
The $32.5 million term loan, decreasing to $30.0 million in December 2027, bears interest at a rate equal to Term CORRA (with an interest rate floor), plus a range from 6.75% to 7.75%, based on the company’s fixed charge coverage ratio throughout the term of the term loan. The revolver facility bears interest at a rate equal to Term CORRA or SOFR, as applicable, plus a range from 2.00% to 2.5% or 1.625% to 2.125% for drawings in U.S. dollars, based on the borrowing capacity of the company throughout the term of the revolver facility.
Concurrently with the closing of the new and amended facilities, the company and Mangrove, one of the company’s controlling shareholders, have signed an amendment to the existing $3.75 million loan agreement entered into in July 2025 extending the maturity date until June 2031. Going forward, the Mangrove loan will bear interest at a rate of 12.2% effective Aug. 1, 2026, and will be repaid through annual principal payments of $250,000 over a period of three years, commencing in June 2028, with a final repayment of $3.0 million within a period of thirty (30) days prior to the June 2031 maturity date.
“We are pleased to complete the refinancing of our term loan with Gordon Brothers and an extension of our revolver with Wells Fargo,” Niccolò Rossi di Montelera, executive chairman of the board and interim CEO of Birks Group, said. “These new five-year credit facilities extend our debt maturities and provide us with increased financial flexibility as we continue to implement development strategies to generate sales growth and focus on driving profitable growth.”
Chad Simon, senior managing director, transactions at Gordon Brothers, added, “We are proud to support Birks Group, one of Canada’s most iconic luxury brands. Our deep expertise in the luxury retail sector and long-standing relationship with the company allowed us to provide a financing solution that delivers unmatched liquidity and flexibility to support Birks Group’s operations and long-term growth.”
Peter Foley, director at Well Fargo Capital Finance, said, “We are pleased to have renewed our ABL financing with Birks Group for an additional five-year term. Our financing is designed to maintain the financial flexibility that the company needs to pursue its growth strategy.”
