Harry Winston Diamond Corporation Announces US$260 Million Luxury Brand Credit Facility
TORONTO, Aug. 30, 2012 /PRNewswire/ – Harry Winston Diamond Corporation (TSX:
HW, NYSE: HWD) (the “Company”), 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.
About Harry Winston Diamond Corporation
Harry Winston Diamond Corporation is a diamond enterprise with premium
assets in the mining and retail segments of the diamond industry. Harry
Winston supplies rough diamonds to the global market from its 40
percent ownership interest in the Diavik Diamond Mine. The Company’s
luxury brand segment is a premier diamond jeweler and luxury timepiece
retailer with salons in key locations, including New York, Paris,
London, Beijing, Shanghai, Hong Kong, Singapore, Tokyo and Beverly
Hills.
The Company focuses on the two most profitable segments of the diamond
industry, mining and retail, in which its expertise creates shareholder
value. This unique business model provides key competitive advantages;
rough diamond sales and polished diamond purchases provide market
intelligence that enhances the Company’s overall performance.
SOURCE Harry Winston Diamond Corporation
