Regis Soars In Pre-market On New Credit Facility To Help Pay Down Debts

(RTTNews) - Shares of Regis Corporation (RGS), an operator of beauty salons, were rising more than 150 percent in pre-market on Tuesday at $12.86, after the company announced a new credit facility which allows it to reduce debt by more than $80 million and save nearly $7 million in annual interest.

The company has entered into the new term loan facility of $105 million with TCW Asset Management Company LLC and Midcap Financial Trust. Additionally, Regis will have access to a $25 million revolving credit facility, both of which will mature on June 24, 2029.

"We conducted a comprehensive strategic review to address our capital structure, and 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" said Matthew Doctor, Regis Corporation's President and Chief Executive Officer.

Regis shares had closed at $5.07, up 2.22 percent on Monday. The stock has traded in the range of $3.87 - $28.00 in the last 1 year.