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    What caused Regis stock to more than double on Tuesday?

    msmarkBy No Comments3 Mins Read

    Regis Corp (NASDAQ: RGS) has entered into a “new senior secured credit facility” with global asset manager TCW Asset Management Company LLC and Midcap Financial Trust.

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    Its shares rose more than 100% on Tuesday.

    Why does Regis stock matter?


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    A $105 million term loan for the company press release He added that it will replace its current debts and help reduce its outstanding debt by more than $80 million.

    Regis Corp. will also receive savings of approximately $7.0 million in annual cash benefits as well on the back of today’s announcement. According to Matthew Doctor – CEO of the company:

    This strategic refinancing is a major milestone for Regis and the next step on our path to long-term sustainable growth and value creation.

    Regis stock is still down about 10% from its year-to-date high in late January.

    RGS received access to $25 million


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    The agreement announced this morning will also ensure Regis Corp. receives a $25 million revolving credit facility.

    The above credit facility in addition to the term loan will mature in five years (June 24, 2029). CEO Doctor also said in the press release on Tuesday:

    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 hair salon operator plans to update investors on its progress during its fourth-quarter 2024 earnings call. Regis stock does not currently pay a dividend.

    Regis took a hit to revenue in its fiscal third quarter


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    CEO Matthew Doctor called TCW and Midcap’s investment “a testament to their confidence in the long-term prospects” of Regis Corp. on Tuesday.

    He also stressed that the Nasdaq-listed company remains committed to “improving customer experience, implementing new technology, and managing corporate expenses.”

    in May, RGS reported revenue of $287 million systemwide For the third fiscal quarter – down from $299 million last year. Its net loss also increased year over year from $1.6 million to $2.3 million in the third quarter. CEO Doctor said at the time:

    The Board of Directors continues to review strategic alternatives to evaluate the Company’s capital structure, and we remain committed to maximizing value for all of our stakeholders.

    Last week, stock analysts at StockNews.com initiated coverage of Regis stock with a “sell” rating. Shares of the hair salon company have a 52-week high of $28 and a 52-week low of $3.87 at writing.

    After today’s rally, Regis Corp. shares are trading well above their 50-day and 200-day moving averages.

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