Regis Corporation Successfully Renegotiates Debt
August 15 2022 - 6:00AM
Business Wire
Announces Credit Agreement Amendment and
Extension
Regis Corporation (NYSE: RGS), a leader in the haircare
industry, announced today that it successfully amended its credit
facility and extended the maturity date from March 23, 2023 to
August 31, 2025. Under the amendment, the revolving credit facility
was converted to a $180 million term loan and $55 million revolving
credit facility with the minimum liquidity covenant reduced to $10
million from $75 million. The amended credit agreement includes
typical provisions and financial covenants, including minimum
EBITDA, leverage and fixed-charge coverage ratio covenants, the
latter two of which are not tested until December 31, 2023.
“We are pleased with the outcome of our debt refinancing
efforts. The terms of the amended credit agreement provide us with
adequate runway and liquidity to invest in the strategic priorities
that we believe will lead us to improved revenue and
profitability,” said Kersten Zupfer, Regis Corporation’s Executive
Vice President and Chief Financial Officer.
“As we have mentioned previously, refinancing our credit
facility was a top priority and I’m very pleased with the outcome.
To be able to extend our maturity and provide Regis with sufficient
liquidity at this time is a major step forward. This amendment,
combined with the sale of our salon management system to Zenoti,
clears the path for us to fully focus on our core business. This
also further demonstrates this leadership team not only
prioritizes, but also executes in a timely manner,” said Matt
Doctor, Regis President and Chief Executive Officer. “Now that we
have the credit agreement completed, I look forward to sharing more
detailed thoughts on our business strategy later this month during
our quarterly earnings call,” added Doctor.
Weil, Gotshal & Manges LLP served as legal counsel and
Jefferies LLC served as financial advisor to Regis Corporation.
About Regis Corporation
Regis Corporation (NYSE:RGS) is leader in the beauty salon
industry. As of March 31, 2022, the Company franchised, owned or
held ownership interests in 5,697 worldwide locations. Regis'
franchised and corporate locations operate under concepts such as
Supercuts®, SmartStyle®, Cost Cutters®, Roosters® and First Choice
Haircutters®. Regis maintains an ownership interest in Empire
Education Group in the U.S. For additional information about the
Company, please visit the Investor Information section of the
corporate website at www.regiscorp.com.
This press release contains or may contain “forward-looking
statements” within the meaning of the federal securities laws,
including statements concerning anticipated future events and
expectations that are not historical facts. These forward-looking
statements are made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. The
forward-looking statements in this document reflect management's
best judgment at the time they are made, but all such statements
are subject to numerous risks and uncertainties, which could cause
actual results to differ materially from those expressed in or
implied by the statements herein. Such forward-looking statements
are often identified herein by use of words including, but not
limited to, “may,” “believe,” “project,” “forecast,” “expect,”
“estimate,” “anticipate,” “intend” and “plan.” In addition, the
following factors could affect the Company's actual results and
cause such results to differ materially from those expressed in
forward-looking statements. These factors include our ability to
regain compliance with the NYSE listing requirements, future
compliance with such requirements, potential future application of
suspension and delisting procedures and future quotation of our
common stock, and other potential factors that could affect future
financial and operating results as set forth under Item 1A of our
Form 10-K. We undertake no obligation to publicly update or revise
any forward-looking statements, whether as a result of new
information, future events or otherwise. However, your attention is
directed to any further disclosures made in our subsequent annual
and periodic reports filed or furnished with the SEC on Forms 10-K,
10-Q and 8-K and Proxy Statements on Schedule 14A.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220815005168/en/
REGIS CORPORATION: Kersten Zupfer
investorrelations@regiscorp.com
Regis (NYSE:RGS)
Historical Stock Chart
From Mar 2024 to Apr 2024
Regis (NYSE:RGS)
Historical Stock Chart
From Apr 2023 to Apr 2024