Zale Corp., Dallas, signed an amendment that it says improves the terms and conditions of its $500 million revolving credit facility.

The amended facility includes an additional $100 million seasonal line, an accordion feature enabling the facility to be increased by up to an additional $100 million, as well as improved economics for the company. The facility now matures in August 2011 rather than August 2009.

“We value the solid, ongoing relationship we have with our bank group,” Rodney Carter, Zale chief financial officer, said Monday in a statement. “The amended facility allows Zale an opportunity to capitalize on favorable market conditions and provides additional financial flexibility to support the Company’s initiatives for long-term growth.”

The amended credit facility includes a syndicate of 15 lenders, with Bank of America, N.A. as administrative agent and issuing bank. JP Morgan Chase Bank, N.A. and Wachovia Capital Financial remain as co-syndication agents.

Zale Corp. is a leading specialty retailer of fine jewelry in North America operating approximately 2,400 retail locations throughout the United States, Canada and Puerto Rico, as well as online. Its brands include Zales Jewelers, Zales Outlet, Gordon’s Jewelers, Bailey Banks & Biddle Fine Jewelers, Peoples Jewellers, Mappins Jewellers and Piercing Pagoda. Through its ZLC Direct organization, Zale also operates online at www.zales.com and www.baileybanksandbiddle.com.

JCK