Signet Jewelers gets term loan and bridge loan commitment for Zale buy

By Sara Rosenberg

New York, Feb. 19 - Signet Jewelers Ltd. has received a commitment for a term loan and a bridge loan to help fund its acquisition of Zale Corp., according to a company presentation.

J.P. Morgan Securities LLC is the lead bank on the debt.

The company said in the presentation that it expects to achieve an "investment grade rating post transaction given strong cash flow generation and projected earnings growth."

Under the agreement, Zale is being acquired for $21.00 per share in cash, or about $1.4 billion.

Closing is expected this year, subject to Zale stockholder approval, certain regulatory approvals and customary conditions.

Signet is an Akron, Ohio-based specialty jewelry retailer. Zale is an Irving, Texas-based specialty retailer of fine jewelry.

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