Credit Restructuring Sent These Shares Flying On Monday

By: Dylan Sikes – AllPennyStocks.com News

Monday, August 15, 2022

Sometimes what it takes to make a corporation tick happens behind the scenes in the treasury department. That’s just what happened today after a Minnesota-based micro cap announced it has successfully amended its credit facility and extended the maturity date from March 23, 2023 to August 31, 2025. According to the release, “t he revolving credit facility was converted to a $180 million term loan and $55 million revolving credit facility with the minimum liquidity covenant reduced to $10 million from $75 million.” This sent shares of Regis Corporation (NYSE:RGS) soaring on Monday.

Regis Corp owns, franchises, and operates beauty salons throughout North America and the United Kingdom. The company's locations provide salon products and services to the mass market, including haircutting, styling, and hair coloring. The vast majority of Regis' salons are in strip malls, shopping centers, and Wal-Mart stores in North America and serve price-conscious customers. The company derives most of its revenue from these locations. The sale of products also contributes a relatively significant percentage of total sales. Regis also operates a smaller portfolio of premium salons across North America and the U.K. The company's major brands include SmartStyle, Cost Cutters, and Supercuts.

Traders seemed to be extremely optimistic on the news as they pushed shares up to $1.34/share (+84.80%) at the session high.

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