Golden Gate Capital gets 19.9% stake holding in Zale Corp.

After having lent $150 million to Zale Corp., Golden Gate Capital (GGC), a private equity company now holds 19.9 percent stake in Zale, reports say. Reports add that GGC now owns about 6.4 million of Zale shares, as per the Schedule 13D filed with the Securities and Exchange Commission (SEC)

The deal allows GGC to opt for owning up to 25 percent equity interest in Zale apart from the interest and fees on the loan of $150 million. In addition, it has also acquired two seats on Zale's board of directors, one is occupied by Stefan Kaluzny (a managing director of Golden Gate and chairman of the board of directors of Express) and the second by Peter Morrow (a principal at Golden Gate Capital).

With 19.9 percent stake in Zale, GGC has now become the second-largest stakeholder in the company following Breeden Capital Management LLC which has 28.3 percent stake.