MISSISSAUGA, Ont. — The Second Cup Ltd. recently entered into a four-year, $8-million secured loan with SPE Finance LLC — an affiliate of Serruya Private Equity (SPE). The company plans to use the loan to repay its existing $6-million credit facility and for general corporate purposes.
“We considered a number of alternatives along with the special committee and we are very pleased to have selected Serruya Private Equity,” says Barbara Mallon, VP of Finance and CFO, The Second Cup Ltd. “This financing enhances our financial capacity to support the implementation of our strategic plan. The Serruya family has a tremendous track record in franchising and we look forward to benefiting from its expertise.”
The term loan comes with a 10-per-cent interest rate and includes warrants to purchase up to 600,000 common shares at a strike price of $2.75 per share. Furthermore, Second Cup has agreed to nominate an SPE associate to join the franchiser’s board of directors.
“We are excited to be investing with Second Cup, an iconic Canadian brand,” says Michael Serruya, managing director at SPE. “This investment capitalizes on our experience and we look forward to helping to build Second Cup in the future.”
