The Regis Corporation Was Able to Successfully Renegotiate Their Debt | Best of Business Today
Home News The Regis Corporation Was Able to Successfully Renegotiate Their Debt

The Regis Corporation Was Able to Successfully Renegotiate Their Debt

The Regis Corporation Was Able to Successfully Renegotiate Their Debt
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.

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.