Signet Jewelers Limited Enters into the Second Amendment to Credit Agreement
August 03, 2021 at 07:36 am EDT
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On July 28, 2021, Signet Jewelers Limited entered into the Second Amendment to Credit Agreement, which amends the company’s senior secured asset-based credit facility under that certain Credit Agreement, dated as of September 27, 2019, by and among the company, as holdings,Signet Group Limited, as the lead administrative borrower, a lead borrower and a borrower, Signet Group Treasury Services Inc., Sterling Jewelers Inc., Signet Trading Limited and Zale Canada Co., each as a lead borrower and a borrower, Sterling Inc., Zale Delaware Inc., R2Net Inc. and R2Net Manufacturing Inc., each as a borrower, the other borrowers from time to time party thereto, the lenders and issuers from time to time party thereto and Bank of America, N.A., as administrative agent, collateral agent and security trustee. The Amended Credit Agreement provides for a senior secured asset-based credit facility of up to the lesser of $1.5 billion and a borrowing base based on the value of certain inventory and third-party credit card receivables, subject to specified advance rates and reserves (the “ABL Revolving Commitments”), and: extends the maturity date of the ABL Facility from September 27, 2024 to July 28, 2026; allows the Company to increase the size of the ABL Facility, including in the form of first-in last-out term loans, by up to $600 million subject to certain conditions contained in the Second Amendment; amends certain representations, warranties and covenants to which the company and certain of its subsidiaries are subject, as obligors under the ABL Facility, including removing, in certain circumstances, the requirement for monthly financial reporting; and provides for a SONIA-based interest rate for borrowings denominated in Pounds Sterling and includes provisions for determining an alternative rate of interest after the expected phase out of LIBOR or in certain other circumstances. Except for the changes noted above, the material terms and conditions of the ABL Facility remain substantially unchanged. The Company does not currently have any outstanding borrowings under the ABL Facility.
Signet Jewelers Ltd is a Bermuda-based holding company. The Company is a retailer of diamond jewelry. Its segments include North America, International and Other. The North America segment operates across the United States and Canada. Its United States stores operate nationally in malls and off-mall locations, as well as online, principally as Kay (Kay Jewelers and Kay Outlet), Zales (Zales Jewelers and Zales Outlet), Jared (Jared The Galleria Of Jewelry and Jared Vault), Diamonds Direct, Banter by Piercing Pagoda, Rocksbox, and digital banners, James Allen and Blue Nile. Its Canadian stores operate as Peoples Jewellers. The International segment operates stores in the United Kingdom, Republic of Ireland and Channel Islands, as well as online. Its stores operate in shopping malls and off-mall locations principally under the H. Samuel and Ernest Jones banners. Other segment consists of subsidiaries involved in the purchasing and conversion of rough diamonds to polished stones.