July 25, 2012 / 3:01 PM / 5 years ago

Zale shares rise on credit refinancing

(Reuters) - Shares of jewelry retailer Zale Corp ZLC.N rose as much as 28 percent after the company said it amended a $650 million credit facility at a lower interest rate and prepaid part of its debt, saving it $17 million per year.

The company’s shares touched a high of $3.29 on Wednesday morning, making it one of the top percentage gainers on the New York Stock Exchange.

Zale had a loss of $4.5 million on a revenue of $445.2 million in the quarter-ended April 30.

As part of the restructuring, Zale prepaid $60.5 million of its existing debt and took on a new loan of $15 million.

Zale said it incurred costs of about $13 million related to the financing, of which about $5 million will be recorded in the fourth quarter.

The company’s shares, which have lost about 33 percent of their value this year, were up 27 percent at $3.26.

Reporting by Arpita Mukherjee in Bangalore; Editing by Sreejiraj Eluvangal

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