Friedman's Reaches Financing Agreements

Troubled U.S. jewelry retailer Friedman's Inc said it has restructured a credit facility and won the approval of lenders and vendors for a trade credit program.

Friedman's existing lenders agreed to a credit facility that provides up to $135 million, split evenly between a senior loan that matures on December 15, 2006, and a junior loan that matures on August 31 of the following year.

Friedman's also said it issued warrants to Farallon Capital Management LLC, an affiliate of one of the lenders under the facility, to buy up to 3,000,000 class A common shares at $1.75 per share.

Farallon will also receive additional warrants that will enable it to acquire another 1,000,000 class A common shares if the term loan remains outstanding a year after the closing of the credit facility.