Finlay Fine Jewelry cuts facility to $300 million, grants lien on 8 3/8%/8.945% notes

By Jennifer Chiou

New York, Feb. 26 - Finlay Fine Jewelry Corp. said it entered into a limited consent and amendment to its fourth amended and restated credit agreement, reducing the available commitments to $300 million and amending the termination date to Feb. 25, 2010.

The company also said that it entered into agreements with holders of a majority of its 8 3/8%/8.945% senior secured third-lien notes due June 1, 2012, under which it granted vendors a third-priority lien on its and its subsidiaries' assets.

The actions were in connection with Finlay's strategic plan to exit its leased department store business over the near-term, focusing solely on its specialty jewelry stores business going forward.

"Given the decline in our department store business over the past five years coupled with the strenuous economic conditions under which we are currently operating, we view our strategic plan to exit this business segment as a necessary measure to strengthen our company," Arthur E. Reiner, chairman and chief executive officer, said in a news release.

The company said that it continues to carefully manage its planned expenditures and will reduce its cost structure to levels appropriate to support its specialty jewelry store business.

Finlay is a New York-based jewelry retailer and a subsidiary of Finlay Enterprises Inc.

© 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.