Golden Gate Capital is agreed to secure the rescue financing needed by the Jewelry retailer Zale Corp. The company announced on Monday that it will lend the jewelry chain of $150 million in exchange for warrants to buy a 25 percent common-stock stake in Zale.

Under the terms of the deal, Golden Gate will also get two seats on Zale’s board of directors which is subjected to shareholder approval. If the warrant would be executed Golden Gate would be the largest shareholder of Zale. This deal will give Zale the cash it needs to fund its operations as it begins placing orders for the important Christmas season.

Zale has rejected a bid from Apollo Management LP that called for the company to sell its Canadian operations and mall-based kiosks and to install a new management team provided by Apollo. According to the people familiar with the deal, Zale chose San Francisco-based Golden Gate over proposals from private-equity firms TPG and Centerbridge Capital Partners LLC.

Zale also announced that it has shored up a fresh deal for a credit line totaling $650 million, led by Bank of America, along with a deal for a Canadian store-brand credit card financed by TD Financing Services.