MONTREAL, June 5, 2026 /CNW/ – Birks Group Inc. (NYSE American LLC: BGI) has announced the closing of a new five-year senior secured term loan facility totaling $32.5 million with 1903P Loan Agent, LLC, an affiliate of Gordon Brothers Group. This new Term Loan, which matures in June 2031, replaces the company’s previous $26 million senior secured term loan, which has been fully repaid. Simultaneously, Birks Group amended and extended its senior secured revolving credit facility with Wells Fargo Canada Corporation, increasing total commitments to $93 million and extending the maturity date to June 2031.
Enhanced Liquidity and Financial Flexibility
The new and amended financing agreements provide Birks Group with increased liquidity, enhanced financial flexibility, and extended debt maturities. These improvements support the company’s strategic initiatives, including investments in store renovations, omni-channel capabilities, digital commerce, and working capital requirements.
Term Loan Details
The $32.5 million Term Loan, which decreases to $30.0 million in December 2027, bears interest at a rate equal to Term CORRA (with a floor), plus a margin ranging from 6.75% to 7.75%, based on the company’s fixed charge coverage ratio. The Revolver Facility carries interest at Term CORRA or SOFR, plus a margin from 2.00% to 2.5% for Canadian dollar drawings and 1.625% to 2.125% for U.S. dollar drawings, depending on borrowing capacity.
Mangrove Loan Amendment
Concurrently, Birks Group and Mangrove Holding S.A., a controlling shareholder, amended an existing $3.75 million loan agreement, extending its maturity to June 2031. The Mangrove Loan will bear interest at 12.2% effective August 1, 2026, with annual principal payments of $250,000 starting in June 2028, and a final repayment of $3.0 million due 30 days before the June 2031 maturity.
Executive Commentary
Niccolò Rossi di Montelera, Executive Chairman and Interim CEO of Birks Group, stated: “We are pleased to complete the refinancing of our term loan with Gordon Brothers and an extension of our revolver with Wells Fargo. These new five-year credit facilities extend our debt maturities and provide us with increased financial flexibility as we continue to implement development strategies to generate sales growth and focus on driving profitable growth.”
Chad Simon, Senior Managing Director at Gordon Brothers, added: “We are proud to support Birks Group, one of Canada’s most iconic luxury brands. Our deep expertise in the luxury retail sector and long-standing relationship with the Company allowed us to provide a financing solution that delivers unmatched liquidity and flexibility to support Birks Group’s operations and long-term growth.”
Peter Foley, Director at Wells Fargo Capital Finance, commented: “We are pleased to have renewed our ABL financing with Birks Group for an additional five-year term. Our financing is designed to maintain the financial flexibility that the Company needs to pursue its growth strategy.”
