Zale Completes Sale of Bailey Banks & Biddle

Dallas, Zale Corp. on Monday said it completed the sale of its Bailey Banks & Biddle brand to Finlay Fine Jewelry Corp. for $200 million.

The company expects to make $175 million on the sale, first announced in September. In addition, Zale will begin a $200 million stock buyback program.

Finlay Enterprises Inc., which owns Finlay Fine Jewelry Corp., financed the acquisition through a $550 million five-year revolving credit facility from GE Corporate Lending, which replaced the company's existing credit facility.

GE Capital Markets Inc. is sole bookrunner for the financing. A $25 million post-closing inventory adjustment will also be financed through the revolving credit facility.