MINNEAPOLIS–(BUSINESS WIRE)–Regis Corporation (NYSE: RGS), a leader in the hair care industry, announced today that it has successfully amended its credit facility and extended the maturity date to August 31, 2025 from March 23, 2023. Under the amendment, the revolving credit facility was converted into a $180 million term loan and $55 million revolving credit facility, with the minimum liquidity agreement increased from $75 million to $10 million has been reduced. The amended credit agreement contains typical terms and financial measures, including minimum EBITDA, leverage and fixed cost recovery ratios, the latter two of which will remain untested until December 31, 2023.
“We are satisfied with the result of our refinancing efforts. The terms of the amended credit agreement provide us with ample headroom and liquidity to invest in strategic priorities that we believe will lead us to improved revenue and profitability,” said Kersten Zupfer, Regis executive vice president and chief financial officer Corporation.
“As we mentioned, the refinancing of our credit facility was a top priority and I am very pleased with the outcome. Being able to extend our term and provide Regis with sufficient liquidity at this point is a big step forward. This change, combined with the sale of our salon management system to Zenoti, paves the way for us to fully focus on our core business. It also shows that this leadership team not only prioritizes, but executes in a timely manner,” said Matt Doctor, President and Chief Executive Officer of Regis. “Now that we have closed the loan agreement, I look forward to sharing more detailed thoughts on our business strategy later this month during our quarterly earnings call,” Doctor added.
Weil, Gotshal & Manges LLP acted as legal counsel and Jefferies LLC acted as financial advisor to Regis Corporation.
About Regis Corporation
Regis Corporation (NYSE:RGS) is a leader in the beauty salon industry. As of March 31, 2022, the Company franchised, owned or owned 5,697 locations worldwide. Regis franchise and corporate locations operate under concepts such as Supercuts®, SmartStyle®, Cost Cutters®, Roosters® and First Choice Haircutters®. Regis holds an interest in Empire Education Group in the United States. For more 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 about expected future events and expectations that are not historical facts. These forward-looking statements are made in accordance with 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 as of the date of their release, but all such statements are subject to numerous risks and uncertainties that could cause actual results to differ materially from those contained or implied herein. Such forward-looking statements are often identified herein by the use of words including, but not limited to, “may”, “believes”, “projects”, “forecasts”, “expects”, “estimates”, “anticipates”, “intends”. “. ‘ and ‘plan’. In addition, the following factors could affect the Company’s actual results and cause those results to differ materially from those projected in the forward-looking statements. These factors include our ability to regain compliance with NYSE listing requirements, the future satisfaction of such requirements, the potential future application of suspension and delisting procedures and the future listing of our common stock, as well as other potential factors affecting the future Financial and operating results as determined could be impacted further 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 additional disclosures made in our subsequent annual and interim reports filed or provided with the SEC on Forms 10-K, 10-Q and 8-K and Proxy Statements in Schedule 14A.