Harry Winston Diamond Corporation Announces $260 Million Luxury Brand Credit Facility
Harry Winston Diamond Corporation (NYSE: HWD), is pleased to announce that the Company's luxury brand subsidiary, Harry Winston Inc., has completed the refinancing of its senior secured revolving credit facility by entering into a new secured five year credit agreement for US$260.0 million with a consortium of banks led by Standard Chartered Bank. The new facility has a maturity date of August 30, 2017. There are no scheduled repayments required prior to maturity. The new facility refinances and replaces the luxury brand's previous US$250.0 million credit facility, which had been scheduled to expire on March 31, 2013. As with the previous agreement, Harry Winston Diamond Corporation has provided a US$20.0 million limited guarantee in respect of the new facility. The facility is available to the luxury brand segment for general corporate purposes.
The amount available under the luxury brand segment's facility is subject to a borrowing base formula based on certain assets of the luxury brand segment. The credit agreement contains affirmative and negative non-financial and financial covenants, which apply to the luxury brand segment. Loans under the credit facility can be either fixed rate loans or revolving line of credit loans. The fixed rate loans bear interest within a range of 2.50% to 3.25% above LIBOR based upon a pricing grid determined by the fixed charge coverage ratio. The revolving line of credit loans bear interest within a range of 1.50% and 2.25% above the bank's prime rate based upon a pricing grid determined by the fixed charge coverage ratio.
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