According to an 8K filed with the SEC, Bank of America served as administrative agent for an amendment to Regis Corporation’s $295 million revolving credit facility, which expires in March 2023. The amendment removes all prior financial covenants, including the net leverage ratio and fixed charge coverage ratio, and adds a minimum liquidity covenant. In addition, the amendment provides Regis Corporation’s lenders security in the company’s assets.

“This transaction represents an important step in aligning the company’s credit facility with its strategic plan,” Kersten Zupfer, executive vice president and CFO of Regis Corporation, said. “The amendment gives the company flexibility to manage the business through its strategic transformation, as well as the uncertainty generated by the COVID-19 global pandemic.”

“We are pleased to conclude our debt refinancing on terms we believe will ensure the company’s conversion to a fully-franchised, capital-light growth platform,” Hugh Sawyer, chairman and CEO of Regis Corporation, said. “We look forward to the continued reopening of our franchise and company-owned salons this summer with a rigorous commitment to the safety of our customers and stylists. I am grateful for the professionalism of our stylist community and the support of our franchise partners and lenders as we move forward to embrace the full potential of our strategy.”

Regis Corporation franchises, owns and operates hair salons.