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
Forward Looking Statements
This press release contains certain "forward-looking"
statements. Given 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) 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 its shares,
(ii) economic, political and market conditions, including the
economies of Canada and the U.S.,
which could adversely affect the Company's business, operating
results or financial condition, including its 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) 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 and
(v) the Company's ability to execute its strategic vision.
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
the Company's Annual Report on Form 20-F filed with the
Securities and Exchange Commission on July
8, 2020 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.