Sally Beauty Holdings, Inc. Announces Repayment of Fixed-Rate Portion of Term Loan

Rhea-AI Summary

Sally Beauty Holdings (NYSE: SBH) has fully repaid $213 million of its 4.5% fixed-rate term loan, funded by excess cash. This move is part of the company's strategy to deleverage its balance sheet, following a previous debt reduction of $445 million in September 2020. As of December 31, 2020, Sally Beauty reported over $515 million in cash and no outstanding balance on its credit line. CFO Marlo Cormier noted the company's resilience during the pandemic and emphasized the importance of continuing their debt reduction efforts as liquidity needs diminish.

Positive

• Fully repaid $213 million on term loan, enhancing balance sheet.
• Reported over $515 million in cash and zero on revolving credit.

Negative

• None.

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 $213 million on its 4.5% fixed-rate term loan. The repayment was funded with excess cash and reflects continued progress toward deleveraging the Company’s balance sheet.

As of December 31, 2020, the Company had more than $515 million of cash on-hand and a zero balance outstanding on its asset-based revolving line of credit. Given the Company’s strong liquidity position and proven ability to navigate through the COVID-19 pandemic, the Company made the strategic decision to execute an additional round of debt reduction. The Company previously reduced its debt levels by $445 million in September 2020.

“Our business has remained resilient throughout the COVID-19 pandemic. Today’s debt reduction represents another positive step in our stated commitment to deleverage our balance sheet as pandemic headwinds begin to abate and the need for excess liquidity diminishes,” said Marlo Cormier, chief financial officer.

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. The Company operates more than 5,000 stores, including 143 franchised locations. Sally Beauty Supply stores offer up to 8,000 products for hair color, hair care, skin care, and nails 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 Hot Shot Tools®. Beauty Systems Group stores, branded as CosmoProf® or Armstrong McCall® stores, along with its outside sales consultants, sell up to 10,500 professionally branded products including Paul Mitchell®, Wella®, Matrix®, Schwarzkopf®, Kenra®, Goldwell®, Joico® and CHI®, 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 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, 2020, and our most recent Quarterly Report on Form 10-Q for the quarter ended June 30, 2020, as filed with the Securities and Exchange Commission. 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/20210105005212/en/

FAQ

What recent debt reduction action did Sally Beauty Holdings (SBH) take?

Sally Beauty Holdings fully repaid $213 million of its 4.5% term loan.

How much cash does Sally Beauty Holdings have as of December 31, 2020?

Sally Beauty holds over $515 million in cash.

What was the previous debt reduction amount for Sally Beauty Holdings before this announcement?

The company previously reduced its debt levels by $445 million in September 2020.

What is the significance of Sally Beauty's debt repayment for investors?

The debt repayment improves the company's financial stability and reduces interest expenses.