TORONTO, June 24 /PRNewswire-FirstCall/ - Harry Winston Diamond Corporation (TSX: HW, NYSE: HWD) (the "Company"), is pleased to announce that today it has completed a senior secured revolving credit facility with Standard Chartered Bank for US$100.0 million. The facility has an initial maturity date of June 24, 2013 with two one-year additional extensions at the Company's option. There are no scheduled repayments required before maturity. The facility is available to the Company and Harry Winston Diamond Mines Ltd. for general corporate purposes.
Robert Gannicott, Chairman and Chief Executive Officer commented, "With diamond markets recovering strongly, and capital expenditures for the Diavik Diamond Mine underground development essentially complete, the Company's cash position is building and there is no "normal-course" need to draw on this debt facility. It does, however, provide strengthened liquidity for the Company going forward."
Borrowings will bear an interest margin of 3.5%. The Company is required to comply with financial covenants at the mining segment level customary for a financing of this nature with change of control provisions at the Company and Diavik Diamond Mines level.
About Harry Winston Diamond Corporation
Harry Winston Diamond Corporation is a specialist diamond enterprise with assets in the mining and retail segments of the diamond industry. Harry Winston supplies rough diamonds to the global market from its 40 per cent ownership interest in the Diavik Diamond Mine (economic ownership of 31%).
The Company's retail division is a premier diamond jeweler and luxury timepiece retailer with salons in key locations, including New York, Paris, London, Beijing, 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