The renewals include improvements on certain
key terms and conditions, which positively impact the Company’s
liquidity position
Birks Group Inc. (the “Company” or “Birks
Group”) (NYSE American: BGI) today announced that it has entered
into an amended and restated senior secured revolving credit
facility (“Amended Credit Facility”) with Wells Fargo Capital
Finance Corporation Canada (“Wells Fargo”) and a senior secured
term loan (“Amended 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 Chief Executive Officer
of Birks Group, commented: “I am pleased to announce the successful
renewals of our senior secured credit facilities with Wells Fargo
and SLR. The renewals include certain improved terms and
conditions, which we believe are favorable to the Company’s
liquidity position and will support the continuing execution of the
Company’s strategic plan. By leveraging our recent positive results
and current bank market conditions and renewing our senior secured
credit facilities at favorable terms through December 2026, we are
effectively securing an important source of liquidity and financial
flexibility for the next 5 years.”
Mr. Bédos further commented: “We appreciate the relationships
that we have built with both Wells Fargo and SLR over the past
years, and thank them for their continued support and commitment to
Birks Group. We look forward to continuing to work with them as we
advance on the execution of our long-term growth strategies.”
The Amended Credit Facility maintains an $85 million commitment
subject to borrowing base availability 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 to seasonal excess availability
blocks in effect from December 20th to January 31st of each year,
as well as a LIBOR transition.
The Amended Term Loan of $12.5 million is subordinated to the
Amended Credit Facility and now bears interest at an annual rate of
CDOR plus 7.75%, a reduction of 50 basis points. The Amended Term
Loan also allows for periodic revisions of the annual interest rate
to 7.00% or 6.75% depending on the Company complying with certain
financial covenants. Furthermore, the Amended Term Loan includes an
increase in advance rates on eligible inventory 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
favorable reductions to seasonal excess availability blocks in
effect from December 20th to January 31st of each year.
All figures presented herein are in Canadian dollars.
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 25 stores under the Maison Birks brand in most
major metropolitan markets in Canada, one retail location in
Calgary under the Brinkhaus brand, one retail location in Vancouver
operated under the Graff brand and one location in Vancouver under
the Patek Philippe brand. Bijoux Birks fine jewellery collections
are also available through select SAKS Fifth Avenue stores in
Canada and the U.S., select Mappin & Webb and Goldsmiths
locations in the United Kingdom, in Mayors stores in the United
States as well as 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 Birks’ web site, www.birks.com.
Forward Looking Statements
This press release contains forward- looking statements which
can be identified by their use of words like “plans,” “expects,”
“believes,” “will,” “anticipates,” “intends,” “projects,”
“estimates,” “could,” “would,” “may,” “planned,” “goal,” and other
words of similar meaning. All statements that address expectations,
possibilities or projections about the future, including without
limitation, statements about our strategies for growth, expansion
plans, liquidity and sources or adequacy of capital, expenditures
and financial results are forward-looking statements.
Because such statements include various risks and uncertainties,
actual results might differ materially from those projected in the
forward- looking statements and no assurance can be given that the
Company will meet the results projected in the forward-looking
statements. These risks and uncertainties include, but are not
limited to the following: (i) the magnitude and length of economic
disruption as a result of the worldwide COVID-19 outbreak,
including its impact on macroeconomic conditions, generally, as
well as its impact on the results of operations and financial
condition of the Company and the trading price of the shares; (ii)
economic, political and market conditions, including the economies
of Canada, and the U.S., which could adversely affect our business,
operating results or financial condition, including our revenue and
profitability, through the impact of changes in the real estate
markets, changes in the equity markets and decreases in consumer
confidence and the related changes in consumer spending patterns,
the impact on store traffic, tourism and sales; (iii) the impact of
fluctuations in foreign exchange rates, increases in commodity
prices and borrowing costs and their related impact on the
Company’s costs and expenses; (iv) changes in interest rates; (v)
the Company’s ability to maintain and obtain sufficient sources of
liquidity to fund its operations, to achieve planned sales, gross
margin and net income, to keep costs low, to implement its business
strategy, maintain relationships with its primary vendors, to
mitigate fluctuations in the availability and prices of the
Company’s merchandise, to compete with other jewelers, to succeed
in its marketing initiatives, and to have a successful customer
service program; (vi) the Company’s ability to continue to borrow
under the Amended Credit Facility and Amended Term Loan, (vii) the
Company’s ability to maintain profitable operations, as well as
maintain specified excess availability levels under the Amended
Credit Facility, make scheduled payments of principal and interest,
and fund capital expenditures; (viii) the Company’s ability to
execute its strategic vision; and (ix) the Company’s ability to
continue as a going concern.
Information concerning factors that could cause actual results
to differ materially is set forth under the captions “Risk Factors”
and “Operating and Financial Review and Prospects” 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 undertakes
no obligation to update or release any revisions to these
forward-looking statements to reflect events or circumstances after
the date of this statement or to reflect the occurrence of
unanticipated events, except as required by law.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211229005186/en/
Company Contacts: Katia Fontana Vice President and Chief
Financial Officer (514) 397-2592 For all press and media
inquiries, please contact: OverCat Communications Audrey Hyams
Romoff, ahr@overcat.com, (647) 223-9970 Gillian DiCesare,
gd@overcat.com, (647) 223-5590 Chelsea Brooks, cb@overcat.com,
(289) 221-6006
Birks (AMEX:BGI)
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