Zale Corp. is banking on the combined impact three new deals to make its bottom line sparkle. The Dallas-based specialty jeweler concluded a trio of agreements to strengthen its capital structure: a $150 million, five-year loan from Golden Gate Capital; a new bank facility led by Bank of America, N.A., General Electric Capital Corp. and Wells Fargo Retail Finance (with each committing $125 million) and a deal with TD Financing Services to offer a proprietary credit card to Canadian customers.
With these deals in place, the company will focus on completing the restructuring of its retail network, continue the expansion of its internet sales and “provide the working capital necessary to execute its merchandising and marketing initiatives,” according to a corporate statement.
Along with Golden Gate’s capital comes the private equity fund’s extensive experience in the retail sector. Two representatives of Golden Gate Capital will serve on Zale’s board of directors.