Sally Beauty Holdings, Inc. deploys excess cash to reduce debt levels
DENTON, Texas – (COMMERCIAL THREAD) –Sally Beauty Holdings, Inc. (NYSE: SBH) (“the Company”) provided a liquidity update today.
In partnership with affiliates of Bank of America, JPMorgan, Wells Fargo, Citizens and Truist, the Company finalized an amendment to the terms of the Company’s existing secured asset based revolving line of credit (expires July 2022), which suspends certain anti-restrictions on hoarding when the outstanding balance remains below $ 375 million.
Due to the increased flexibility resulting from the Amendment, the significant cash-generating potential of Sally Beauty Holdings, and the stability of the business over the past few months, even in the face of COVID-19, the Company has made the first step towards deleveraging its balance sheet by repaying the entire existing balance of $ 375.5 million on its revolving line of credit, repaying the Company’s existing $ 20 million FILO term loan facility and prepaying a portion of $ 50 million of its 4.5% fixed rate term loan.
“Our ability to reduce debt is a testament to the resilience of our business throughout the COVID-19 pandemic, our aggressive cash management efforts, and the partnerships we have with our banking group. We had over $ 925 million in liquidity at the end of August and, following the deleveraging effort, we will retain significant flexibility to respond to the market environment given our liquidity and the availability of funding under our secured asset-based line of credit, ”said Chris Brickman, President and CEO.
About Sally Beauty Holdings, Inc.
Sally Beauty Holdings, Inc. (NYSE: SBH) is an international specialty retailer and distributor of professional beauty products with annual sales of approximately $ 3.9 billion. Through the activities of the Sally Beauty Supply and Beauty Systems group, the Company sells and distributes in 5,062 stores, including 158 franchised units, and operates in the United States, Puerto Rico, Canada, Mexico , Chile, Peru, United Kingdom, Ireland, Belgium, France, Netherlands, Spain and Germany. Sally Beauty Supply stores carry up to 8,000 products for hair coloring, hair care, skin care and nails through exclusive brands such as Ion®, Generic Value Products®, Beyond the Zone® and Silk Elements® as well as professional lines such as Wella®, Clairol®, OPI®, Conair® and Hot Shot Tools®. The Beauty Systems group stores, under the CosmoProf® or Armstrong McCall® brands, as well as its external sales consultants, sell up to 10,500 professional brand products, including Paul Mitchell®, Wella®, Matrix®, Schwarzkopf®, Kenra®, Goldwell®, Joico® and CHI®, intended for use in salons and for resale by salons to retail consumers. For more information on Sally Beauty Holdings, Inc., please visit https://www.sallybeautyholdings.com/.
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