The company will now have more credit to finance strategic and growth initiatives
Birks Group announced that its senior credit facilities have been extended and favorably amended.
Its $110 million senior secured revolving credit facility, set to expire in August 2017, has been extended to November 2021, and its interest rate has been reduced by 75 basis points per year.
The 47-store jeweler has also amended the terms of its senior secured term loan to extend the maturity from August 2018 to May 2021 and to reduce the term loan amount from $33 million to $28 million. The company has also seen what it calls “advantageous modifications to its covenants.”
The amendments will allow the company to borrow up to $5 million more a year, which will allow Birks to further invest in its strategic and growth initiatives.