Regis Corporation, a prominent figure in the haircare industry, has announced the execution of a new senior secured credit facility with TCW Asset Management Company LLC (“TCW”) and Midcap Financial Trust (“Midcap”). This facility includes a $105 million term loan aimed at replacing existing debt, effectively reducing outstanding indebtedness by over $80 million and generating approximately $7 million in annual cash interest savings. Additionally, Regis will have access to a $25 million revolving credit facility under this agreement, both of which are set to mature on June 24, 2029.
Upon the transition of outstanding letters of credit to the new revolving credit facility, Regis anticipates full availability in excess of the current outstanding letters of credit. Matthew Doctor, President and CEO of Regis Corporation, emphasized the strategic significance of this refinancing, describing it as a pivotal step towards sustainable long-term growth and value enhancement. He highlighted the comprehensive strategic review undertaken to optimize the company’s capital structure, expressing satisfaction with the refinancing agreement’s potential to bolster the balance sheet and enhance financial flexibility. This, in turn, enables Regis to concentrate on advancing business operations.
The investment commitment from TCW and Midcap underscores their confidence in Regis’s future prospects and its capacity to deliver shareholder value. Regis remains steadfast in its commitment to enhancing customer experiences, leveraging new technologies, supporting stylists and franchisees, and optimizing corporate expenses. The company looks forward to updating stakeholders on its progress during the fiscal fourth quarter 2024 earnings call.
For detailed insights into the transaction and pro forma capitalization levels, stakeholders are encouraged to review the June 2024 Refinancing Transaction Summary, accessible through the Investor Relations section of Regis Corporation’s corporate website under Presentations & Supplemental Financial Information. Further specifics will also be disclosed in the Form 8-K filing with the Securities and Exchange Commission.
Jefferies LLC acted as financial advisor, while Weil, Gotshal & Manges LLP provided legal counsel to Regis Corporation throughout the refinancing process.
