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Signet Signs Key Deals on Lending and Credit

Aug 4, 2021 5:44 AM   By Rapaport News
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Signet Jewelers has reached a new deal with its lenders and completed the final step in the sale of its credit portfolio.

“These actions, as well as S&P’s recent upgrade of Signet’s issuer credit rating resulting from our enhanced financial profile, demonstrate the progress we are making with our Inspiring Brilliance growth strategy,” said Joan Hilson, the retailer’s chief financial and strategy officer.

The US-based jeweler has renegotiated its $1.5 billion asset-backed lending facility, extending the maturity by nearly two years to July 2026, it reported Tuesday. The new terms “reflect the company’s strengthened balance sheet and strong profitability” and give it flexibility to invest in the business, it noted.

In addition, the owner of Kay Jewelers and Zales has inked a new agreement to sell its credit receivables to funds managed by CarVal Investors and Castlelake. The transaction represents the final stage in Signet’s outsourcing of its consumer credit — a business that analysts viewed as a significant risk in the past.

The developments follow Signet’s return to profit in the first fiscal quarter ending May 1. The company attributed its 98% year-on-year sales increase for the period to its Inspiring Brilliance program, which focuses on innovation and sustainable growth.

Image: A Kay Jewelers store in Massachusetts. (Shutterstock)
Tags: CarVal Investors, Castlelake, credit, finance, Inspiring Brilliance, Kay Jewelers, lending, Rapaport News, retail, S&P, Signet, Signet Jewelers, zales
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