Birks Group completed a C$12.5 million ($9.5 million) senior secured term loan with Crystal Financial.
The new term loan matures in October 2022, bears interest at an annual rate of CDOR plus 8.25% and is subordinated to the company’s existing senior secured revolver facility with Wells Fargo Canada. The term loan increases the company’s borrowing capacity significantly, allowing it to continue to invest in its strategic growth initiatives.
The new facility will be used to finance the next phase of the company’s five-year strategic plan initiatives which include investments in its Canadian flagship stores — most notably the renovation of its Toronto and Vancouver stores — the implementation of the company’s new ERP system and pointed investments in omni-channel areas that include e-commerce and wholesale activities.
Jean-Christophe Bédos, president and CEO of Birks Group, said, “We are pleased to announce this financing with Crystal to support our long-term growth objectives. The closing of this deal at favorable terms to the company is reflective of our strong balance sheet position as a result of the sale of Mayors on October 23, 2017. This new term loan will provide us with increased financial flexibility needed to execute on our growth initiatives over the coming years.”
Birks Group is a designer of fine jewelry, timepieces and gifts and operator of luxury jewelry stores in Canada.
