Sally Beauty has expanded its borrowing capacity and boosted its liquidity as the COVID-19 pandemic continues to impact its business.
In partnership with affiliates of Bank of America, JP Morgan and Truist, the company completed an amendment under the terms of the company’s existing secured asset-based revolving line of credit, which expires July 2022, increasing its borrowing capacity by $120 million. The increase was achieved through a $100 million increase of the revolving line of credit and the addition of a $20 million FILO term loan facility. Total capacity is now $620 million, with $395 million drawn and $364 million of cash on the balance sheet as of March 31, 2020.
“The combination of our aggressive cash management efforts in the face of COVID-19 and this expansion of borrowing capacity in collaboration with Bank of America, JP Morgan and Truist provides Sally Beauty Holdings with additional liquidity with which to navigate the COVID-19 impact to our business,” said Chris Brickman, president and CEO, Sally Beauty.