Olaplex, an indirect, wholly-owned subsidiary of Olaplex Holdings, completed a successful refinancing of its existing secured credit facility with a new credit agreement comprised of a $675 million senior secured term loan facility and a $150 million senior secured revolving credit facility.
Goldman Sachs, JPMorgan Chase, Morgan Stanley Senior Funding, Barclays Bank, BofA Securities, Jefferies Finance and Truist Securities acted as joint lead arrangers and joint bookrunners for the new credit facilities.
“We are very happy with the outcome of this refinancing,” Eric Tiziani, CFO of Olaplex, said. “Given the strength of our balance sheet, continued track record of high-quality growth and profitability, and highly cash generating business model, we were able to use cash on hand to substantially reduce our outstanding term loan facility debt from $769 million to $675 million, whilst also greatly reducing our current interest rate obligation by 300bps. Collectively, we expect the new credit facilities will generate significant ongoing interest expense savings for the business.”
The term loan bears interest at a rate of adjusted SOFR (subject to a 0.50% floor) plus initially 3.75% per annum (with a 0.25% leverage-based step-down, tied to achieving a first lien net leverage ratio of 1.20x), and matures on Feb. 23, 2029. The revolving facility bears interest at a rate of adjusted SOFR for dollar denominated borrowings (subject to a 0% floor) + initially 3.75% (with a 0.25% leverage-based step-down, tied to achieving a first lien net leverage ratio of 1.20x), and matures on Feb. 23, 2027.
The company received a corporate credit rating of B1 from Moody’s Investor Services and B+ from S&P Global.
At closing, the proceeds of the term loan were used to refinance all of the term loans outstanding under the existing credit agreement and to pay the fees and expenses of the transaction. The new revolving facility was undrawn at closing.
