Sally Beauty Holdings Announces the Completion of a Registered Public Offering of $600 Million of Senior Notes Due 2032
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The completion of a $600.0 million registered public offering of Senior Notes due 2032 by Sally Holdings LLC and Sally Capital Inc. is a strategic financial move. By opting to redeem their outstanding senior unsecured notes due 2025 using the proceeds, the company is essentially restructuring its debt. This could indicate an attempt to take advantage of lower interest rates or extend the maturity of their debt to improve liquidity. Stakeholders should note that such actions can lead to improved credit ratings and potentially reduce the cost of capital. However, it is also important to monitor the company's leverage ratios post-transaction to assess the impact on financial health.
The issuance of Senior Notes often reflects market confidence in a company's ability to service its debt. The guarantee by Sally Beauty Holdings, Inc. and certain subsidiaries provides an additional layer of security for investors. In the context of the wider beauty and personal care industry, this move may suggest that the company is preparing for strategic investments or acquisitions. The success of this offering could be a positive signal for other companies in the sector considering similar financial instruments to fund their operations or growth initiatives.
From a market perspective, the redemption of the senior unsecured notes due in 2025 at 100% of their principal amount indicates a pre-emptive approach to debt management. This could be interpreted as a sign of operational efficiency and financial prudence, which may be well-received by investors. Additionally, this could have a ripple effect on the company's stock price as the market digests the implications of the company's long-term financial strategy and its potential to free up cash flow for reinvestment into core business activities.
The Issuers will use the net proceeds from this offering, together with borrowings under their existing senior secured credit facility and cash on hand, to redeem all
BofA Securities, J.P. Morgan and Truist Securities served as joint book-running managers for the offering.
A shelf registration statement relating to the offering was previously filed with the Securities and Exchange Commission (the “SEC”) and was effective immediately upon filing. Before investing, you should read the prospectus, the prospectus supplement and other documents filed with the SEC for information about the Company and the offering. Copies of the prospectus and related supplement may be obtained by contacting any of the joint book-running managers, whose contact information is listed at the bottom of this announcement. You may also obtain these documents free of charge by visiting the SEC’s website at www.sec.gov.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. This press release shall not constitute a notice of redemption with respect to the notes being redeemed.
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®, Bondbar®, Strawberry Leopard®, Generic Value Products®, Inspired by Nature® and Silk Elements® as well as professional lines such as Wella®, Clairol®, OPI®, L'Oreal®, Wahl® and Babyliss Pro®. Beauty Systems Group stores, branded as CosmoProf® or Armstrong McCall® stores, along with its outside sales consultants, sell up to 8,000 professionally branded products including Paul Mitchell®, Wella®, Matrix®, Schwarzkopf®, Kenra®, Goldwell®, Joico®, Amika® and Moroccanoil®, 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 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, those described in our filings with the SEC, including our Annual Report on Form 10-K for the year ended September 30, 2023. 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.
Joint book-running managers:
BofA Securities, Inc.
NC1-022-02-25
201 North Tryon Street, 2nd Floor
Attn: Prospectus Department
Email at dg.prospectus_requests@bofa.com
J.P. Morgan Securities LLC
c/o Broadridge Financial Solutions
1155 Long Island Avenue
Attention: Prospectus Department
Telephone: +1 (866) 803-9204
Email: prospectus-eq_fi@jpmchase.com
Truist Securities, Inc.
Telephone: +1 (800) 685-4786
View source version on businesswire.com: https://www.businesswire.com/news/home/20240227375207/en/
Jeff Harkins
Investor Relations
940-297-3877
jharkins@sallybeauty.com
Source: Sally Beauty Holdings, Inc.
FAQ
What is the purpose of Sally Beauty Holdings, Inc.'s $600.0 million Senior Notes offering?
What is the total aggregate principal amount of the Senior Notes issued?
How will the net proceeds from the offering be used?
What is the redemption price for the senior unsecured notes due 2025?
