Sally Beauty Holdings, Inc. Modifies Credit Agreement, Extends Maturity Date to 2029

On December 11, 2024, Sally Holdings LLC, Beauty Systems Group, LLC, and Sally Beauty Supply, LLC (collectively referred to as the “Domestic Borrowers”), along with Beauty Systems Group (Canada), Inc. (the “Canadian Borrower”), Sally Beauty Holdings, Inc. (the “Company”), and other Guarantors, entered into the Fifth Amendment to Amended and Restated Credit Agreement (the “ABL Facility”).

The agreement, which involved various parties including lenders such as Bank of America, N.A., JPMorgan Chase Bank, N.A., and Truist Securities, aimed to extend the maturity of the ABL Facility from May 11, 2026, to December 11, 2029. Additionally, certain covenant and reporting terms were modified as part of this extension.

The ABL Facility will maintain its security status with a first-priority lien on the accounts and inventory (and their proceeds) of the Company and its domestic subsidiaries. Simultaneously, it will hold a second-priority lien on the remaining assets of the Company and its domestic subsidiaries.

It’s important to note that the description provided here of the ABL Facility is partial, and for full details, interested parties are encouraged to refer to the complete text of the ABL Facility, which is filed as Exhibit 4.1 to the Current Report on Form 8-K.

This report falls under Item 2.03, pertaining to the creation of a direct financial obligation or an obligation under an off-balance sheet arrangement of a registrant, as well as Item 1.01, concerning the entry into a material definitive agreement.

As per the disclosure requirements under Item 9.01, the filing also displays the relevant financial statements and exhibits, including the Fifth Amendment to Amended and Restated Credit Agreement dated December 11, 2024.

The signing on behalf of Sally Beauty Holdings, Inc. was executed by Denise Paulonis, the President and Chief Executive Officer, on December 12, 2024.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Sally Beauty’s 8K filing here.

Sally Beauty Company Profile

Sally Beauty Holdings, Inc operates as a specialty retailer and distributor of professional beauty supplies. The company operates through two segments, Sally Beauty Supply and Beauty Systems Group. The Sally Beauty Supply segment offers beauty products, including hair color and care products, skin and nail care products, styling tools, and other beauty products for retail customers, salons, and salon professionals.