MONTREAL, Dec. 21, 2016 /CNW Telbec/ - Birks Group Inc.
(the "Company" or "Birks Group") (NYSE MKT: BGI), which operates 47
luxury jewelry stores across Canada, Florida and Georgia, today announced an extension and
favorable amendments to its senior credit facilities. The Company's
$110 million senior secured revolving
credit facility, which was set to expire in August 2017, has been extended to November 2021, and the interest rate charged on
the facility is reduced by 75 basis points per annum. The Company
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 $5 million
reduction is expected to be borrowed under the senior secured
revolving credit facility at a much lower interest cost. In
addition, as part of the amendments, the Company will benefit from
advantageous modifications to its covenants, which combined with
the reduction in interest costs, will increase the Company's
borrowing capacity by up to $5
million during certain periods of the year. The additional
borrowing capacity will allow the Company to continue to invest in
its strategic and growth initiatives.
Jean-Christophe Bédos, President and Chief Executive Officer of
Birks Group, commented: "We are very pleased with the great support
that we have received from our lenders in amending our senior
credit facilities which extends the duration for a further term of
more than four years at more favorable terms and at a lower
interest cost for the Company. We feel encouraged that our lenders
have recognized management's efforts to restructure the Company and
to improve the performance of its retail operations. The additional
borrowing capacity under our newly amended senior credit facilities
will allow us to continue to implement strategies to generate sales
growth and improve profitability."
About Birks Group Inc.
Birks Group is a leading operator of luxury jewelry stores in
Canada and in the United States. As of December 21, 2016, we operated 27 stores under
the Birks brand in most major metropolitan markets of Canada, 17 stores in Florida and Georgia under the Mayors brand, one store
under the Rolex brand name and two retail locations in Calgary and Vancouver under the Brinkhaus brand. Birks was
founded in 1879 and developed over the years into Canada's premier retailer, designer and
manufacturer of fine jewelry, timepieces, and gifts. Mayors
was founded in 1910 and has maintained the intimacy of a
family-owned boutique while becoming renowned for its fine jewelry,
timepieces, giftware and service. Additional information can be
found on the Birks Group web site, www.birksgroup.com.
Forward Looking Statements
This press release contains certain "forward-looking" statements
concerning the Company's performance and strategies, including the
Company's expectations that the amendment and extension of its
credit facilities will allow the Company to continue investing in
its strategic and growth initiatives and the additional borrowing
capacity will allow the Company the necessary financing to continue
to implement strategies to generate sales growth and improve
profitability. 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 we will meet the results projected in the
forward-looking statements. These risks and uncertainties include,
but are not limited to the following: (i) economic, political and
market conditions, including the economies of the U.S. and
Canada, 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 (especially in the state of
Florida), 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; (ii) 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; (iii)
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. Information concerning factors that could cause
actual results to differ materially are set forth under the
captions "Risk Factors" and "Operating and Financial Review and
Prospects" and elsewhere in our Annual Report on Form 20-F filed
with the Securities and Exchange Commission on June 30, 2016 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.
SOURCE Birks Group Inc.