Back Bay Capital Provides Financing to Mappin & Webb Inc.

BOSTON--(BUSINESS WIRE)--Jan. 11, 1999--

- First Agented UK Deal for New Finance Company -

Back Bay Capital Funding LLC announced Monday that it has provided a 3 million sterling pound (approximately $5 million) junior secured credit facility to Mappin & Webb.

Funds were used to support the management buyout of Mappin & Webb and its affiliate, Watches of Switzerland, from the Asprey Group, as well as to support the future working capital needs of the companies. The transaction represents Back Bay Capital's entry into the UK. This recent and high-profile buyout was led by the new majority shareholders of the business, venture capital firm EAC.

"We are pleased to assist the management of Mappin & Webb by providing them with the additional liquidity they needed to complete their acquisition," said Edward J. Siskin, president of Back Bay Capital. "We believe that the UK represents an area of tremendous growth potential for Back Bay and we hope to assist other companies in need of transition capital."

Founded in 1774, Mappin & Webb is renowned as a high-quality jeweler and prestigious silversmith. Mappin & Webb operates 14 stores in the UK as well as stores in the Channel Islands, Prague, Dubai and locations in Japan.

Watches of Switzerland was established in 1924 as the specialist retailer of Swiss watches in the UK. Today Watches of Switzerland operates 14 stores in the UK and is the leading retailer of luxury Swiss watches in the country.

"We and EAC are committed to building on the heritage of both of these companies in order to grow them to their full potential," said Judith Pilkington, managing director of Mappin & Webb. "Back Bay Capital demonstrated a high degree of responsiveness in structuring this new facility through their ability to act quickly and professionally, combined with their keen understanding of our business."

EAC Director Paul Downes said, "We are delighted to be involved with management in the exciting future of Mappin & Webb and Watches of Switzerland. Back Bay Capital provided us with the best possible service in facilitating this transaction and we look forward to working with them on this and other opportunities in the future."

Back Bay Capital is a new high-yield finance group which provides Tranche B, junior secured loans of $5 million and over to companies seeking growth financings, bridge and acquisition facilities and turnaround capital. Headquartered in Boston, Back Bay Capital has offices in Chicago and Los Angeles.