Zale completes $665 million credit facility led by Bank of America

By Sara Rosenberg

New York, July 24 - Zale Corp. closed on a new $665 million five-year credit facility that includes a $650 million revolver and a $15 million first-in last-out loan, according to a news release.

Bank of America Merrill Lynch is the administrative agent on the deal.

Pricing on the revolver can range from Libor plus 175 basis points to 225 bps based on average availability.

The first-on last-out loan has pricing that can range from Libor plus 350 bps to 400 bps based on average availability.

Proceeds were used to repay $60.5 million of senior secured term loan debt and refinance an existing revolver that was priced 175 bps higher than the new facility.

In addition, the company amended and extended its $80 million senior secured term loan with Golden Gate Capital so that it matures in five years.

Pricing on the extended loan is 11% per annum, down from 15% per annum previously.

The extended loan is non-callable in year one, then at 104 in year two, 103 in year three and 102 in year four.

Zale is an Irving, Texas-based specialty retailer of diamonds and other jewelry products.

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