Regis amends revolver, revising financial covenants, raising pricing

By Sara Rosenberg

New York, May 18 – Regis Corp. amended its $295 million revolving credit facility, removing all financial covenants, including the net leverage ratio and fixed charge coverage ratio, and adding a minimum liquidity covenant of $75 million, according to an 8-K filed with the Securities and Exchange Commission on Monday.

In addition, the amendment increased pricing on the revolver to a range of Libor plus 375 basis points to 425 bps based on average utilization and added a 1.25% Libor floor. Prior to the amendment, pricing ranged from Libor plus 125 bps to 185 bps based on net leverage.

Also, the amendment provides lenders security in the company’s assets.

The amendment was completed on May 15.

Bank of America is the administrative agent on the revolver.

Regis is a Minneapolis-based owner, operator and franchiser of hair salons.

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