By Colin Kellaher


Regis shares more than tripled in early trading Tuesday after the hair-salon operator unveiled a refinancing that pared its debt load by about $80 million.

Shares of the Minneapolis company were recently changing hands at $18.67, compared with Monday's closing price of $5.07.

Regis said it signed a new financing agreement that includes a $105 million term loan and a $25 million revolving credit facility, and that it had repaid and terminated its previous credit agreement, with its lenders accepting $94 million to satisfy $190 million of principal and interest owed.

Regis' debt ballooned as a result of business disruption caused by the Covid-19 pandemic, as the company was forced to draw on its credit line to fund its cash needs because it didn't qualify for government funding assistance due to its size.

The company said it expects annual interest savings of about $7 million from the refinancing, and that it plans to accelerate investments in long-term growth.


Write to Colin Kellaher at colin.kellaher@wsj.com


(END) Dow Jones Newswires

06-25-24 1023ET