- Regis ( NYSE: RGS ) successfully amended its credit facility and extended the maturity date from Mar. 23, 2023 to Aug. 31, 2025.
- The revolving credit facility was converted to a $180M term loan and $55M revolving credit facility with the minimum liquidity covenant reduced to $10M from $75M.
- 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 Dec. 31, 2023.
- This amendment, combined with the sale of the company's salon management system to Zenoti, clears the path for to fully focus on core business.
- "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," EVP & CFO Kersten Zupfer commented.
- Shares rallied 40.1% higher premarket.
For further details see:
Regis successfully amends credit facility maturity date and term loan amount