Canadian specialty coffee retailer Second Cup Ltd (TSX: SCU) has closed its $8 million debt exchange transaction with SPE Finance LLC, an affiliate of Serruya Private Equity (SPE). Each of the four SPE shareholders now hold about 6.9 percent of Second Cup’s outstanding shares or about 7.2 percent if warrants are exercised. SPE Managing Directors Michael Serruya and Aaron Serruya have as a result joined the company’s board of directors. SPE is a Canadian family office that specializes in consumer-brand investments.
Second Cup Announces Closing of Debt Exchange Transaction with SPE Finance LLC
MISSISSAUGA, ON, Aug. 10, 2017 /CNW/ – The Second Cup Ltd. (TSX: SCU) (Second Cup or the Company) is pleased to announce that it has closed its previously-announced debt exchange transaction with SPE Finance LLC (SPE) and its four shareholders.
SPE, an affiliate of Serruya Private Equity, and its shareholders have exchanged SPE’s $8.0 million secured term loan for a total of 4,210,528 common shares of Second Cup at a price of $1.90 per common share in full satisfaction of the term loan. After giving effect to the debt exchange, each of the four SPE shareholders now holds approximately 6.9% of the outstanding common shares of Second Cup (including common shares currently held by them), or approximately 7.2% assuming the exercise of the warrants distributed to them.
After completing this transaction, Second Cup is now debt-free with approximately $3 million in cash and close to $1 million in reduced annual expenses. This provides Second Cup with a much improved financial foundation, upon which to build for the future.
Second Cup is also pleased to announce that Michael Serruya and Aaron Serruya have been appointed to the board of directors of the Company as the nominees of the SPE Shareholders.
About Second Cup Coffee Co.™
Founded in 1975, The Second Cup Ltd. is a Canadian specialty coffee retailer operating over 290 franchised and company-owned cafes in Canada. The Company’s vision is to be the coffee brand most passionately committed to quality and innovation. For more information, please visit www.secondcup.com or find the Company on Facebook and Twitter.
About Serruya Private Equity
Serruya Private Equity Inc. (SPE) is a Toronto-area based, family managed group that invests capital in a broad range of asset classes, with an emphasis on retail and real estate. SPE’s principals have a heritage of experience developing brands and its affiliates currently include global brands Yogen Fruz, Pinkberry and Swensens, with over one billion dollars of worldwide system revenue.
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Photo courtesy of The Second Cup Ltd