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The renewals include improvements to certain key terms and conditions, which have a positive impact on the Company’s liquidity position.
MONTREAL – (BUSINESS WIRE) –
Birks Group Inc. (the “Company” or “Birks Group”) (NYSE American: BGI) announced today that it has entered into an amended and restated senior secured revolving credit facility (“ Modified Term Loan ”) with Wells Fargo Capital Finance Corporation Canada (“ Wells Fargo ”) and a Senior Secured Term Loan (“ Modified Term Loan ”) with Crystal Financial LLC (dba SLR Credit Solutions) (“ SLR ”). The Amended Credit Facility and Amended Term Loan extend the maturity date of the Company’s existing loans from October 2022 to December 2026.
Mr. Jean-Christophe Bédos, President and CEO of Birks Group, said: “I am pleased to announce the successful renewal of our senior secured credit facilities with Wells Fargo and SLR. The renewals include certain improved terms and conditions which, in our opinion, are favorable to the Company’s liquidity position and will support the continued execution of the Company’s strategic plan. By building on our recent positive results and current banking market conditions and renewing our senior secured credit facilities on favorable terms through December 2026, we are effectively securing an important source of liquidity and financial flexibility for corporate clients. Next 5 years. ”
Mr. Bédos added, “We appreciate the relationships we have established with Wells Fargo and SLR over the past few years, and thank them for their continued support and commitment to the Birks Group. We look forward to continuing to work with them as we move forward in executing our long-term growth strategies. ”
The amended credit facility maintains a commitment of $ 85 million subject to the availability of the borrowing base based on specified advance rates, eligibility criteria and customary reserves. The amended credit facility also includes a committed accordion of $ 5 million. The amended credit facility provides for a number of modifications, including favorable reductions in seasonal excess availability blocks in effect from December 20 to January 31 of each year, as well as a LIBOR transition.
The amended $ 12.5 million term loan is subordinated to the amended credit facility and now bears interest at the annual rate of CDOR plus 7.75%, a reduction of 50 basis points. The modified term loan also allows periodic revisions of the annual interest rate to 7.00% or 6.75% depending on the Company’s compliance with certain financial covenants. In addition, the modified term loan includes an increase in advance rates on eligible stocks of 100 basis points from December 2021 to December 2022, 75 basis points from January 2023 to March 2023, 50 basis points from April 2023 to June 2023 and 25 basis points from July 2023 to September 2023, as well as advantageous reductions on the blocks of seasonal excess cash in force from December 20 to January 31 of each year.
All figures presented here are in Canadian dollars.
About Groupe Birks inc.
The Birks Group is a leading designer of fine jewelry, watches and gifts and operates luxury jewelry stores in Canada. The Company operates 25 stores under the Maison Birks brand in most major metropolitan markets in Canada, one store in Calgary under the Brinkhaus brand, one store in Vancouver operated under the Graff brand and one store in Vancouver under the Patek Philippe brand. Birks Jewelery fine jewelry collections are also available at select SAKS Fifth Avenue stores in Canada and the United States, select Mappin & Webb and Goldsmiths stores in the United Kingdom, Mayors stores in the United States, and several retailers. jewelry stores in North America. Birks was founded in 1879 and has grown to become the premier retailer and designer of quality jewelry, watches and gifts in Canada. Additional information is available on the Birks website, www.birks.com.
This press release contains forward-looking statements which can be identified by the use of words such as “plans”, “expects”, “believes”, “will”, “anticipate”, “intend to” , “Projects”, “estimates”, “could”, “would”, “could”, “planned”, “objective” and other words with similar meaning. All statements that deal with any expectations, possibilities or projections regarding the future, including, without limitation, statements about our growth strategies, expansion plans, liquidity and sources or adequacy of capital, expenses and financial results are forward-looking statements.
Since these statements include various risks and uncertainties, actual results may differ materially from those projected in forward-looking statements and no assurance can be given that the Company will achieve the results projected in forward-looking statements. These risks and uncertainties include, but are not limited to: (i) the extent and duration of economic disruptions resulting from the global COVID-19 epidemic, including its impact on macroeconomic conditions, in general, as well as its impact on the Company’s operating results and financial condition and share price; (ii) economic, political and market conditions, including the economies of Canada and the United States, which could adversely affect our business, results of operations or financial condition, including our revenues and our profitability, due to the impact of changes in real estate markets, changes in stock markets and the decline in consumer confidence and related changes in consumer spending habits, the impact on traffic in stores , tourism and sales; (iii) the impact of fluctuations in exchange rates, increases in commodity prices and borrowing costs and their related impact on the costs and expenses of the Company; (iv) variations in interest rates; (v) the Company’s ability to maintain and obtain sufficient sources of liquidity to finance its operations, achieve expected sales, gross margin and net profit, keep costs low, execute its business strategy, maintain relationships with its major suppliers, mitigate fluctuations in the availability and prices of the Company’s merchandise, compete with other jewelers, succeed in marketing initiatives and have an effective customer service program; (vi) the ability of the Company to continue to borrow under the Amended Credit Facility and the Amended Term Loan, (vii) the ability of the Company to maintain profitable operations, as well as to maintain levels of excess availability specified under the amended Credit Facility, to make scheduled payments of principal and interest, and to finance capital expenditures; (viii) the Company’s ability to execute its strategic vision; and (ix) the Company’s ability to continue operating.
Information regarding factors that could cause actual results to differ materially are presented under the headings “Risk Factors” and “Operational and Financial Review and Outlook” and elsewhere in the Company’s annual report on Form 20- F filed with the Securities and Exchange Commission on June 17, 2021 and subsequent filings with the Securities and Exchange Commission. The Company assumes no obligation to update or publish revisions of these forward-looking statements to reflect events or circumstances after the date of this statement or to reflect the occurrence of unforeseen events, except as required by law. .
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Source: Birks Group Inc.