MINNEAPOLIS–(BUSINESS WIRE)–Regis Corporation (NYSE: RGS), a leader in the hair care industry, today announced that it has successfully amended its credit facility and extended the maturity date from March 23, 2023 to August 31, 2025. Under this amendment, the revolving credit was converted into a $180 million term loan and a $55 million revolving credit facility, with the minimum liquidity covenant reduced from $75 million to $10 million. of dollars. The Amended Credit Agreement includes standard financial covenants and covenants, including minimum EBITDA, leverage and fixed charge coverage ratio covenants, the latter two not being 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 enable us to improve our revenues and profitability,” said Kersten Zupfer, Executive Vice President and Chief Financial Officer of Regis Corporation.
“As we previously mentioned, refinancing our credit facility was a top priority and I am very pleased with the outcome. Being able to extend our maturity and provide Regis with sufficient liquidity at this stage is a major step forward. This amendment, combined with the sale of our salon management system to Zenoti, paves the way for us to focus fully on our core business. It also demonstrates that this leadership team not only sets priorities, but also executes in a timely manner,” said Matt Doctor, President and CEO of Regis. “Now that we have closed the credit agreement, I look forward to sharing more detailed thoughts on our business strategy later this month on 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 the beauty salon industry leader. As of March 31, 2022, the Company was franchised, owned or held interests in 5,697 locations worldwide. Regis franchise and corporate locations operate under concepts such as Supercuts®, SmartStyle®, Cost Cutters®, Roosters® and First Choice Haircutters®. Regis retains a stake in Empire Education Group in the United States. For additional information about the company, please visit the Investor Information section of the company’s 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 regarding 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 contained herein reflect the best judgment of management 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 or implied by the statements herein. These forward-looking statements are often identified herein by the use of words including, but not limited to, “may”, “believe”, “project”, “anticipate”, “expect”, “estimate”, ” anticipate”, “intend to”. and “plan”. In addition, the following factors could affect the Company’s actual results and cause those results to differ materially from those expressed in the forward-looking statements. These factors include our ability to regain compliance with NYSE listing requirements, future compliance with such requirements, potential future application of suspension and delisting proceedings and future listing of our common stock, and others. potential factors that could affect future financial and operating results as stated. in accordance with 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 drawn to any other disclosures made in our subsequent annual and periodic reports filed with or furnished to the SEC on Forms 10-K, 10-Q and 8-K and proxy statements on Schedule 14A.