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Wall Street: a stock listed on the Nasdaq 100 soars more than 210%

Wall Street: a stock listed on the Nasdaq 100 soars more than 210%
Wall Street: a stock listed on the Nasdaq 100 soars more than 210%

Regis Corp (NASDAQ) announced a new senior secured credit facility with TCW Asset Management Company LLC and Midcap Financial Trustwhich shot up its shares more than 100% this Tuesday.

According to the company’s press release, a $105 million term loan will replace its existing debt, reducing its outstanding debt by more than $60 million and allowing for annual savings of approximately $7 million in interest.

This wayshares of the hair care industry leader They climb more than 200% in that session. Thus, Regis Corp’s paper is located above US$15, still very far from its maximum of US$27.60 that it reached in July 2023.

Access to a new line of credit

The deal also gives Regis Corp access to a $25 million revolving credit facility. Both the revolving line of credit and the term loan will mature on June 24, 2029. Doctor added:

“We are pleased to have reached a refinancing agreement that will significantly reduce our debt, improve the health of our balance sheet and increase our financial flexibility so we can focus on transforming our business operations.”

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Reuters

The company plans to update investors on its progress on its fourth-quarter 2024 earnings call. Regis stock does not currently pay dividends. Doctor called TCW and Midcap’s investment a “testament to their confidence in the long-term prospects” of Regis Corp. He also confirmed the company’s commitment to improving the customer experience, implementing new technologies and managing of corporate expenses.

In May, Regis reported revenue of $287 million in its third financial quarter, down from $299 million a year earlier. The net loss increased from US$1.6 million to US$2.3 million.

About Regis Corporation

Regis Corporation (NasdaqGM: RGS) is a leader in the hair care industry, operating franchises and corporate locations under brands such as Supercuts®, SmartStyle®, Cost Cutters®, Roosters® and First Choice Haircutters®.

Source: Ambito

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