Refinancing reduces outstanding debt by more than $80 million, saving ~$7 million in cash interest annually and accelerating Regis’ investment in long-term growth
Supplemental Presentation Available on the Regis Investor Relations Website
MINNEAPOLIS, June 25, 2024—-Regis Corporation (NasdaqGM: RGS) (“Regis” or the “Company”), a leader in the haircare industry, today announced that it has entered into a new senior secured credit facility with TCW Asset Management Company LLC (“TCW”), a leading global asset manager, and Midcap Financial Trust (“Midcap”). A $105 million term loan replaces the Company’s existing debt, reducing outstanding indebtedness by more than $80 million and saving approximately $7 million in cash interest annually. In addition to the term loan, the Company will have access to a $25 million revolving credit facility. The new revolving credit facility and term loan will mature on June 24, 2029. Upon transition of the Company’s outstanding letters of credit to the new revolving credit facility, the Company expects to have full access to the availability in excess of the outstanding letters of credit.
“This strategic refinancing is a significant milestone for Regis and the next step on our path towards sustainable long-term growth and value creation,” said Matthew Doctor, Regis Corporation’s President and Chief Executive Officer. “We conducted a comprehensive strategic review to address our capital structure, and we are pleased to have reached a refinancing agreement that will significantly reduce our debt, improve the health of our balance sheet and increase our financial flexibility so we can focus on transforming our business operations.”
“The investment from TCW and Midcap is a testament to their confidence in the long-term prospects of our business and our ability to enhance value for our shareholders. We remain committed to improving the customer experience, implementing new technology, supporting the stylist and franchisee community, and managing our corporate expenses. We look forward to updating the market on our progress on our fiscal fourth quarter 2024 earnings call.”
For additional details on the transaction and pro forma capitalization levels, please visit the June 2024 Refinancing Transaction Summary, linked here and located on the Investor Relations section of the corporate website in Presentations & Supplemental Financial Information. Additional details will also be available on Form 8-K filed with the Securities and Exchange Commission.
Jefferies LLC served as financial advisor and Weil, Gotshal & Manges LLP served as legal counsel to Regis.
About Regis Corporation
Regis Corporation (NasdaqGM: RGS) is a leader in the haircare industry. As of March 31, 2024, the Company franchised or owned 4,557 locations. Regis’ franchised and corporate locations operate under concepts such as Supercuts®, SmartStyle®, Cost Cutters®, Roosters® and First Choice Haircutters®. For additional information about the Company, including a reconciliation of certain non-GAAP financial information and certain supplemental financial information, please visit the Investor Relations section of the corporate website at www.regiscorp.com.