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BofA Agents Refi of Regis Corporation’s Credit Facilities

May 20, 2020, 08:55 AM
Filed Under: Industry News
Related: Bank of America

Regis Corporation, a leader in the haircare industry, whose primary business is franchising, owning, and operating technology enabled hair salons, announced that it successfully amended its $295 million revolving credit facility that expires in March 2023. The amendment, among other things, removes all prior financial covenants, including the net leverage ratio and fixed charge coverage ratio, and adds a minimum liquidity covenant. In addition, the amendment provides the Company’s lenders security in the Company’s assets.

According to a regulatory filing, Bank of America served as administrative agent to the refinancing.

Kersten Zupfer, Executive Vice President and CFO stated, “This transaction represents an important step in aligning the Company’s credit facility with its strategic plan. The amendment gives the Company flexibility to manage the business through its strategic transformation, as well as, the uncertainty generated by the COVID-19 global pandemic.”

“We are pleased to conclude our debt refinancing on terms we believe will ensure the Company’s conversion to a fully-franchised, capital-light growth platform,” commented Hugh Sawyer, Chairman and CEO. “We look forward to the continued reopening of our franchise and company-owned salons this summer with a rigorous commitment to the safety of our customers and stylists,” added Mr. Sawyer. “I am grateful for the professionalism of our stylist community and the support of our franchise partners and lenders as we move forward to embrace the full potential of our strategy," concluded Mr. Sawyer.

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