Regis amends, creating $180 million term loan from revolver

By Sara Rosenberg

New York, Aug. 15 – Regis Corp. amended its credit facility, converting $180 million of the existing $295 million revolving credit facility to a new term loan due Aug. 31, 2025, reducing revolver commitments to $55 million and extending the revolver maturity to Aug. 31, 2025 from March 26, 2023, according to an 8-K filed with the Securities and Exchange Commission on Monday.

The amendment also eliminates the $115 million incremental loan facility, requires the company to prepay the credit facilities each quarter in an amount equal to 75% to 100% of its excess cash flow, reduces the threshold for prepayment due to excess cash on hand to $15 million from $100 million, reduces the minimum liquidity covenant to $10 million from $75 million, and includes new financial covenants regarding minimum EBITDA, maximum leverage and minimum fixed charge coverage.

Pricing on the term loan is SOFR plus 387.5 basis points, stepping up to SOFR plus 425 bps plus 2% PIK on March 27, 2023 and SOFR plus 425 bps plus 3% PIK on March 27, 2024.

The term loan has no amortization.

Bank of America is the administrative agent on the deal.

The amendment was completed on Aug. 12.

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

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