Sally Beauty Holdings Completes Full Repayment of its $300 Million 8.75% Senior Secured Notes

Rhea-AI Summary

Sally Beauty Holdings, Inc. (NYSE: SBH) has successfully repaid the full balance of $300 million on its 8.75% senior secured notes due 2025. The repayment was made using excess cash and $150 million borrowed from its ABL credit facility. CFO Marlo Cormier highlighted that these senior notes, issued during the pandemic, were no longer necessary. Since September 2020, the company has managed to pay down over $1 billion in debt, reflecting significant progress on its balance sheet and leverage ratio.

Positive

• Repayment of $300 million in senior secured notes, improving balance sheet.
• Over $1 billion in debt repaid since September 2020, indicating strong financial management.

Negative

• None.

DENTON, Texas--(BUSINESS WIRE)-- Sally Beauty Holdings, Inc. (NYSE: SBH) (“the Company”), the leader in professional hair color, today announced that it has fully repaid the outstanding balance of $300 million on its 8.75% senior secured notes due 2025. The payment was funded through a combination of excess cash and approximately $150 million borrowed under the Company’s ABL credit facility.

“The senior notes were issued in April 2020 when our stores were temporarily closed at the beginning of the pandemic. These notes recently became callable and were no longer needed in our capital structure,” said Marlo Cormier, chief financial officer. “We have made great progress on our balance sheet and leverage ratio over the last two years. Including this debt repayment, we have paid down over $1 billion in debt since September 2020.”

About Sally Beauty Holdings, Inc.

Sally Beauty Holdings, Inc. (NYSE: SBH), as the leader in professional hair color, sells and distributes professional beauty supplies globally through its Sally Beauty Supply and Beauty Systems Group businesses. Sally Beauty Supply stores offer up to 7,000 products for hair color, hair care, nails, and skin care through proprietary 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 L’Oreal®. Beauty Systems Group stores, branded as CosmoProf® or Armstrong McCall® stores, along with its outside sales consultants, sell up to 10,000 professionally branded products including Paul Mitchell®, Wella®, Matrix®, Schwarzkopf®, Kenra®, Goldwell®, Joico® and Olaplex®, intended for use in salons and for resale by salons to retail consumers. For more information about Sally Beauty Holdings, Inc., please visit https://www.sallybeautyholdings.com/.

Cautionary Notice Regarding Forward-Looking Statements

Statements in this news release and the schedules hereto which are not purely historical facts or which depend upon future events may be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, can be identified by the use of forward-looking terminology such as “believes,” “projects,” “expects,” “can,” “may,” “estimates,” “should,” “plans,” “targets,” “intends,” “could,” “will,” “would,” “anticipates,” “potential,” “confident,” “optimistic,” or the negative thereof, or other variations thereon, or comparable terminology, or by discussions of strategy, objectives, estimates, guidance, expectations and future plans. Forward-looking statements can also be identified by the fact that these statements do not relate strictly to historical or current matters.

Readers are cautioned not to place undue reliance on forward-looking statements as such statements speak only as of the date they were made. Any forward-looking statements involve risks and uncertainties that could cause actual events or results to differ materially from the events or results described in the forward-looking statements, including, but not limited to, the risks and uncertainties related to COVID-19 and those described in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended September 30, 2021. Consequently, all forward-looking statements in this release are qualified by the factors, risks and uncertainties contained therein. We assume no obligation to publicly update or revise any forward-looking statements.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220531006003/en/

Jeff Harkins

Investor Relations

940-297-3877

jharkins@sallybeauty.com

Source: Sally Beauty Holdings, Inc.

FAQ

What recent financial milestone did Sally Beauty Holdings (SBH) achieve?

Sally Beauty Holdings (SBH) recently repaid $300 million in senior secured notes due 2025.

How much debt has Sally Beauty Holdings (SBH) paid down since September 2020?

Sally Beauty Holdings (SBH) has paid down over $1 billion in debt since September 2020.

What was the source of funding for Sally Beauty Holdings' (SBH) debt repayment?

The debt repayment was funded through excess cash and $150 million borrowed from the ABL credit facility.

What impact does the repayment of senior secured notes have on Sally Beauty Holdings' (SBH) financials?

The repayment improves the balance sheet and reduces leverage for Sally Beauty Holdings (SBH).