e.l.f. Beauty and e.l.f. Cosmetics, each as a borrower, entered into a senior secured credit agreement with a bank group led by Bank of Montreal, as the administrative agent, swingline lender and L/C issuer, which provided a $165 million term loan facility and a $35 million revolving credit facility.

The proceeds from the term loan facility were used to refinance the debt of e.l.f. Cosmetics, pay related fees, costs and expenses, fund working capital and for general corporate purposes.

Borrowings under both the term loan facility and the revolving credit facility bear interest, at the borrowers’ option, at either an adjusted LIBOR rate determined by reference to the cost of funds for U.S. dollar deposits for the applicable interest period (subject to a minimum floor of 0%) plus an applicable margin ranging from 2.00% to 3.50% based on the company’s consolidated total net leverage ratio or a floating base rate plus an applicable margin ranging from 1.00% to 2.50% based on the company’s consolidated total net leverage ratio. At closing, the applicable margin for both the revolving credit facility and the term loan facility was 3.50% for the adjusted LIBOR rate and 2.50% for the floating base rate.