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.”



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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