Regis details $260 million revolver, starts at Libor plus 125 bps

By Sarah Lizee

Olympia, Wash., April 2 – Regis Corp. disclosed details of its $260 million five-year unsecured revolving credit facility dated March 26 in an 8-K filed Friday with the Securities and Exchange Commission.

The credit facility includes a $30 million sublimit for letters of credit, a $30 million sublimit for swingline loans and a $50 million sublimit for some multicurrency borrowings.

The facility also features an up to $150 million accordion option.

Borrowings bear interest at Libor plus 125 basis points to 185 bps, depending on the company’s consolidated net leverage ratio.

The facility fee ranges from 25 basis points to 40 bps, also based on leverage.

Interest is initially Libor plus 125 bps with a 25 bps commitment fee.

The facility matures in March 2023.

The new revolver replaces the company’s previous $200 million five-year unsecured credit facility that was due to expire in June 2018.

Regis used $90 million of borrowings under the new facility, along with cash on hand, to redeem the company’s $123 million 5˝% senior notes due December 2019. The notes were redeemed on Friday for about $126.5 million, which was 101% of the principal amount.

Merrill Lynch, Pierce, Fenner & Smith Inc. and KeyBanc Capital Markets LLC are the joint lead arrangers and bookrunners, with Bank of America, NA acting as administrative agent, swingline lender and letter-of-credit issuer.

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

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