Brilliant Earth lands $105 million senior secured credit facility

By William Gullotti

Buffalo, N.Y., May 24 – Brilliant Earth, LLC, a controlled subsidiary of Brilliant Earth Group, Inc., entered a $105 million senior secured credit facility with Silicon Valley Bank as administrative agent and collateral agent, according to an 8-K filing with the Securities and Exchange Commission.

The facility is divided into a $65 million secured term loan and a $40 million secured revolver, both of which mature May 24, 2027.

Borrowings bear interest at SOFR plus an annual 12.5 basis point adjustment, plus an additional margin ranging from 225 bps to 275 bps. The margin is dependent upon the company’s consolidated total leverage ratio.

The revolver is subject to a commitment fee on the unused portion ranging from 25 bps to 35 bps, also determined by the consolidated total leverage ratio.

The term facility is required to be paid quarterly in an amount equal to 1.25% per quarter through June 30, 2024, 1.875% per quarter from Sept. 30, 2024 through June 30, 2025 and 2.5% per quarter thereafter, with the balance payable at maturity. The term facility is also subject to certain mandatory prepayment requirements in connection with asset sales, casualty events and debt incurrence, subject to customary exceptions.

Both the term facility and the revolver are subject to financial maintenance covenants, tested quarterly. The company is not permitted to have a consolidated fixed charge coverage ratio of less than 1.25x to 1x, a consolidated total leverage ratio exceeding 4x to 1x, or a consolidated borrower leverage ratio exceeding 3x to 1x.

The May 24 agreement replaced the company’s existing agreement with Runway Growth Finance Corp. from 2019, which would have expired in October 2023 and under which $58,157,894.74 was outstanding at closing. The company was required to pay a 1% prepayment fee plus a final payment fee.

Proceeds were used at closing to refinance existing debt and will be used for working capital and general corporate purposes.

Brilliant Earth Group is a designer and manufacturer of jewelry products. Brilliant Earth, LLC is a retailer based in San Francisco and part of the jewelry, luggage and leather goods stores industry.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.