HAMILTON, Bermuda, Aug. 3, 2021 /PRNewswire/ -- Signet Jewelers
Limited ("Signet") (NYSE: SIG), the world's largest retailer of
diamond jewelry, today announced further updates to initiatives
aligned with its Inspiring Brilliance strategies.
"We are excited to announce two significant financial milestones
today," said Joan Hilson, Chief
Financial & Strategy Officer. "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.
First, we have renegotiated our $1.5
billion asset based lending facility, which now matures in
2026, contains less restrictive covenants, and affords us greater
financial flexibility. Second, we have entered into new, long-term
receivable purchase agreements, which provide us with improved
terms and fully remove consumer credit risk from our balance sheet.
These actions further our mission to enable all consumers to
Celebrate Life and Express Love ™ with our high-quality jewelry and
services."
Asset Based Lending Extension Further Supports Capital
Priorities
Signet's $1.5 billion asset based
lending facility ("ABL") has been extended by nearly two years
until July 2026 with terms that
reflect the Company's strengthened balance sheet and strong
profitability. Importantly, and consistent with the Company's
capital priorities, the extension and availability of the ABL
provides the Company flexibility to pursue continued investments in
the business, as well as an additional option to address Signet's
2024 maturity obligations for its senior notes and preference
shares, if necessary.
Financial Services Transformation Removes Consumer Credit
Risk
Signet recently finalized receivable purchase agreements with
acquisition trusts, the beneficial interests of which are owned by
investment funds managed by CarVal Investors, L.P. and Castlelake,
L.P. (the "Purchasers"). Effective June 30,
2021, these agreements include the continued purchase of
add-on receivables on the Purchasers' existing accounts, as well as
the purchase of the Signet-owned credit card receivables portfolio
for accounts that had been originated through Fiscal 2021. The
agreements are in effect through June 30,
2023, at which point annual renewal options become
available.
The arrangements with the Purchasers represent the final step in
fully outsourcing Signet's credit offerings and removing consumer
credit risk from its balance sheet. Further, when viewed within the
breadth of Signet's payment options, the Company has strengthened
its financial service offerings available to U.S. customers, which
includes the recently enhanced agreements with Comenity Bank and
Genesis Financial Solutions ("Genesis"). Genesis continues to
be Signet's long-term third-party credit servicer providing a
seamless experience for our customers.
Alongside other financial service partners, such as Affirm and
Progressive Leasing, the Company provides customers with a wide
range of payment options.
About Signet:
Signet Jewelers Limited is the world's
largest retailer of diamond jewelry. As a purpose-driven and
sustainability-focused company, Signet is a participant in the
United Nations Global Compact and adheres to its principles-based
approach to responsible business. Signet is a Great Place to Work
–Certified™ company and has been named to the
Bloomberg Gender-Equality Index for three
consecutive years. Signet operates approximately 2,800 stores
primarily under the name brands of Kay Jewelers, Zales, Jared, H.
Samuel, Ernest Jones, Peoples,
Piercing Pagoda, and JamesAllen.com and the jewelry subscription
service, Rocksbox. Further information on Signet is available
at www.signetjewelers.com. See also www.kay.com,
www.zales.com, www.jared.com, www.hsamuel.co.uk,
www.ernestjones.co.uk, www.peoplesjewellers.com, www.pagoda.com,
www.rocksbox.com and www.jamesallen.com.
Safe Harbor Statement:
This release contains
statements which are forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. These
statements, based upon management's beliefs and expectations as
well as on assumptions made by and data currently available to
management, appear in a number of places throughout this document
and include statements regarding, among other things, Signet's
results of operation, financial condition, liquidity, prospects,
growth, strategies and the industry in which Signet operates. The
use of the words "expects," "intends," "anticipates," "estimates,"
"predicts," "believes," "should," "potential," "may,"
"preliminary," "forecast," "objective," "plan," or "target," and
other similar expressions are intended to identify forward-looking
statements. These forward-looking statements are not guarantees of
future performance and are subject to a number of risks and
uncertainties which could cause the actual results to not be
realized, including, but not limited to: the negative impacts that
the COVID-19 pandemic has had, and continues to have, on Signet's
business, financial condition, profitability and cash flows; the
effect of steps we take in response to the pandemic; the severity,
duration and potential resurgence of the pandemic, including
whether it is necessary to temporarily reclose our stores,
distribution centers and corporate facilities or for our suppliers
and vendors to temporarily reclose their facilities; the pace of
recovery when the pandemic subsides and the heightened impact it
has on many of the risks described herein, including without
limitation risks relating to disruptions in our supply chain
(specifically in India), consumer
behaviors such as willingness to congregate in shopping centers and
shifts in spending away from the jewelry category and the impact on
demand of our products, our level of indebtedness and covenant
compliance, availability of adequate capital, our ability to
execute our business plans, our lease obligations and relationships
with our landlords, and asset impairments; general economic or
market conditions; financial market risks; our ability to optimize
Signet's transformation strategies; a decline in consumer spending
or deterioration in consumer financial position; changes to
regulations relating to customer credit; disruption in the
availability of credit for customers and customer inability to meet
credit payment obligations; our ability to achieve the benefits
related to the outsourcing of the credit portfolio, including due
to technology disruptions, future financial results and operating
results and/or disruptions arising from changes to or termination
of the relevant non-prime outsourcing agreement requiring
transition to alternative arrangements through other providers or
alternative payment options and our ability to successfully
establish future arrangements for the forward-flow receivables;
deterioration in the performance of individual businesses or of the
Company's market value relative to its book value, resulting in
impairments of long-lived assets or intangible assets or other
adverse financial consequences; the volatility of our stock price;
the impact of financial covenants, credit ratings or interest
volatility on our ability to borrow; our ability to maintain
adequate levels of liquidity for our cash needs, including debt
obligations, payment of dividends, and capital expenditures as well
as the ability of our customers, suppliers and lenders to access
sources of liquidity to provide for their own cash needs; changes
in our credit rating; potential regulatory changes, global economic
conditions or other developments related to the United Kingdom's exit from the European Union;
exchange rate fluctuations; the cost, availability of and demand
for diamonds, gold and other precious metals; stakeholder reactions
to disclosure regarding the source and use of certain minerals;
seasonality of Signet's business; the merchandising, pricing and
inventory policies followed by Signet and failure to manage
inventory levels; Signet's relationships with suppliers including
the ability to continue to utilize extended payment terms and the
ability to obtain merchandise that customers wish to purchase; the
failure to adequately address the impact of existing tariffs and/or
the imposition of additional duties, tariffs, taxes and other
charges or other barriers to trade or impacts from trade relations;
the level of competition and promotional activity in the jewelry
sector; our ability to optimize Signet's multi-year strategy to
gain market share, expand and improve existing services, innovate
and achieve sustainable, long-term growth; the maintenance and
continued innovation of Signet's OmniChannel retailing and ability
to increase digital sales; changes in consumer attitudes regarding
jewelry and failure to anticipate and keep pace with changing
fashion trends; changes in the supply and consumer acceptance of
and demand for gem quality lab created diamonds and adequate
identification of the use of substitute products in our jewelry;
ability to execute successful marketing programs and manage social
media; the ability to optimize Signet's real estate footprint; the
ability to satisfy the accounting requirements for "hedge
accounting," or the default or insolvency of a counterparty to a
hedging contract; the performance of and ability to recruit, train,
motivate and retain qualified sales associates; management of
social, ethical and environmental risks; the reputation of Signet
and its banners; inadequacy in and disruptions to internal controls
and systems, including related to the migration to new information
technology systems which impact financial reporting; security
breaches and other disruptions to Signet's information technology
infrastructure and databases; an adverse development in legal or
regulatory proceedings or tax matters, including any new claims or
litigation brought by employees, suppliers, consumers or
shareholders, regulatory initiatives or investigations, and ongoing
compliance with regulations and any consent orders or other legal
or regulatory decisions; failure to comply with labor regulations;
collective bargaining activity; changes in corporate taxation
rates, laws, rules or practices in the US and jurisdictions in
which Signet's subsidiaries are incorporated, including
developments related to the tax treatment of companies engaged in
Internet commerce or deductions associated with payments to foreign
related parties that are subject to a low effective tax rate; risks
related to international laws and Signet being a Bermuda corporation; difficulty or delay in
executing or integrating an acquisition, business combination,
major business or strategic initiative; risks relating to the
outcome of pending litigation; our ability to protect our
intellectual property or physical assets; changes in assumptions
used in making accounting estimates relating to items such as
extended service plans and pensions; or the impact of
weather-related incidents, natural disasters, strikes, protests,
riots or terrorism, acts of war or another public health crisis or
disease outbreak, epidemic or pandemic on Signet's business.
For a discussion of these and other risks and uncertainties
which could cause actual results to differ materially from those
expressed in any forward looking statement, see the "Risk Factors"
and "Forward-Looking Statements" sections of Signet's Fiscal 2021
Annual Report on Form 10-K filed with the SEC on March 19, 2021 and quarterly reports on Form 10-Q
and the "Safe Harbor Statements" in current reports on Form 8-K
filed with the SEC. Signet undertakes no obligation to update or
revise any forward-looking statements to reflect subsequent events
or circumstances, except as required by law.
Investors:
Vinnie
Sinisi
SVP Investor Relations & Treasury
+1-330-665-6530
vincent.sinisi@signetjewelers.com
Media Contact:
Colleen
Rooney Chief Communications & ESG
Officercolleen.rooney@signetjewelers.com
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SOURCE Signet Jewelers Ltd.