Whitehall Jewellers Acquisition Proposal by Newcastle
October 30, 05
Whitehall Jewellers announced Thursday that it received a cash proposal from Newcastle Partners, L.P. of $1.10 per share. Under the proposal, Newcastle would pay off the Company’s recent bridge loan.
Under the proposal, which is subject to a number of conditions, Newcastle would pay off the Whitehall’s recent bridge loan. Newcastle expects to obtain a commitment to replace the company’s senior credit facility or obtain consents from the company’s senior lenders.
On October 4, the company announced its entry into agreements with funds managed by Prentice Capital Management, L.P. and Holtzman Opportunity Fund, L.P. Under the Prentice Agreements, the company has the right, subject to certain conditions, to consider alternative proposals.
Whitehall’s Board of Directors has not made a determination as to what action, if any, it may take.
Whitehall Jewellers is a U.S. specialty retailer of fine jewelry, operating 387 stores in 38 U.S. states.