Regis to use proceeds from stock, notes offering to prepay debt

By Lisa Kerner

Charlotte, N.C., July 6 - Regis Corp. announced a public offering of common stock and convertible senior notes, the proceeds of which will be used to repay $267 million total principal amount of some outstanding senior notes, a company news release said.

The Minneapolis-based hair and retail product salon operator said it has negotiated to prepay these notes with a premium over their principal amount that is less than the current make-whole premium.

According to Regis, it has also amended its revolving credit, term loan and private shelf facilities to provide relief with respect to certain covenants and to lower its fixed charge coverage ratio requirement to 1.3 from 1.5 times.

Regis said the capacity under its revolving credit facility has been reduced to $300 million from $350 million.

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