Regis Corporation Announces Successful Amendment to Revolving Credit Facility
May 18 2020 - 6:00AM
Business Wire
Regis Corporation (NYSE: RGS), a leader in the haircare
industry, whose primary business is franchising, owning, and
operating technology enabled hair salons, announced today 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.
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.
About Regis Corporation
Regis Corporation (NYSE:RGS) is a leader in beauty salons and
cosmetology education. As of December 31, 2019, the Company
franchised, owned or held ownership interests in 7,152 worldwide
locations. Regis' franchised and corporate locations operate under
concepts such as Supercuts®, SmartStyle®, Cost Cutters®, Roosters®
and First Choice Haircutters®. Regis maintains an ownership
interest in Empire Education Group in the U.S. For additional
information about the Company, including a reconciliation of
certain non-GAAP financial information and certain supplemental
financial information, please visit the Investor Information
section of the corporate website at www.regiscorp.com.
Safe Harbor Statement
This press release contains or may contain "forward-looking
statements" within the meaning of the federal securities laws,
including statements concerning 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 in this document reflect management's
best judgment 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 in or
implied by the statements herein. Such forward-looking statements
are often identified herein by use of words including, but not
limited to, "may," "believe," "project," "forecast," "expect,"
"estimate," "anticipate," and "plan." In addition, the following
factors could affect the Company's actual results and cause such
results to differ materially from those expressed in
forward-looking statements. These factors include a potential
material reduction in revenue from our company-owned and franchised
salons as a result of the uncertain duration and severity of the
COVID-19 outbreak as well as the health of our stylists, customers
and employees. Additional information concerning potential factors
that could affect future financial results is set forth under Item
1A on 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 further disclosures made in our subsequent annual
and periodic reports filed or furnished with the SEC on Forms 10-K,
10-Q and 8-K and Proxy Statements on Schedule 14A.
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version on businesswire.com: https://www.businesswire.com/news/home/20200518005139/en/
Kersten Zupfer investorrelations@regiscorp.com
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