CPE News (7/9/2020) – Birks Group Inc. (NYSE American: BGI) has secured a CDN $10 million subordinated secured term loan from Investissement Québec (IQ).
Birks Group will use the funding to support the working capital needs following the impacts of COVID-19 and increases the company’s borrowing capacity, allowing it to continue the relaunch of its operations, including the full re-opening of its store network throughout Canada, and omni-channel value-creation initiatives in a COVID-19 environment.
The new term loan, which matures in July 2024, is subordinated to the company’s existing senior secured revolver facility with Wells Fargo Capital Finance Corporation Canada and Crystal Financial LLC.
Birks Group has previously secured and repaid two term loans from Investissement Québec (IQ).
Montreal based Birks Group is a leading designer of fine jewelry, timepieces and gifts and operator of luxury jewelry stores in Canada, with wholesale customers in North America and the U.K. As of May 31, 2020, Birks Group operated 27 stores under the Maison Birks brand, 1 under Brinkhaus brand (Calgary), 1 each under the Graff brand and the Patek Philippe brand (Vancouver).
Birks Group has approximately 365 employees.
photo credit: Birks Group
Birks Group Closes New Term Loan with Investissement Québec Français
MONTREAL, July 9, 2020 /CNW Telbec/ – Birks Group Inc. (the “Company” or “Birks”) (NYSE American LLC: BGI), announced the closing of a CAD$10 million subordinated secured term loan with Investissement Québec (“IQ”) on July 8, 2020. This new term loan will be used to support the working capital needs of the Company following the impacts of COVID-19 and increases the Company’s borrowing capacity, allowing it to continue the relaunch of its operations, including the full re-opening of its store network throughout Canada, and omni-channel value-creation initiatives in a COVID-19 environment.
The new term loan, which matures in July 2024, is subordinated to the Company’s existing senior secured revolver facility with Wells Fargo Capital Finance Corporation Canada (“Wells Fargo”) and Crystal Financial LLC (“Crystal”). The loan bears an interest rate of 3.14% per annum, is repayable in 36 equal payments beginning in July 2021 and requires the Company to have a working capital ratio (defined as current assets divided by current liabilities excluding the current portion of operating lease liabilities) of at least 1.01, calculated on an annual basis.
Jean-Christophe Bédos, President and Chief Executive Officer of Birks Group, commented: “We are pleased to announce this financing with Investissement Québec, a long-time partner of the Company. The closing of this deal at favorable terms to the Company is reflective of our strong partnership with IQ. It will provide us with increased financial flexibility needed to accomplish our long term strategic objectives. We appreciate the support of IQ and look forward to working closely with their team as we continue to align the Company towards long-term value creation.”
About Birks Group Inc.
Birks Group is a leading designer of fine jewellery, timepieces and gifts and operator of luxury jewellery stores in Canada. The Company operates 27 stores under the Maison Birks brand in most major metropolitan markets in Canada, one retail location in Calgary under the Brinkhaus brand and two retail locations in Vancouver under the Graff and Patek Philippe brands. Birks Collections are available at Mappin & Webb and Goldsmiths in the United Kingdom in addition to several jewellery retailers across North America. Birks was founded in 1879 and has become Canada’s premier retailer and designer of fine jewellery, timepieces, and gifts. Additional information can be found on the Company’s web site, www.birks.com
SOURCE Birks Group Inc.
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