European Wax Center Raises $400M Via Securitized Financing

by Shivani Kumaresan, Benzinga Staff Writer

March 29, 2022 6:30 AM | 1 min read |

European Wax Center Inc EWCZ has priced $400 million of fixed-rate senior secured notes with a fixed interest rate of 5.50% per annum, payable quarterly.
The anticipated repayment term is five years.
The notes will be issued by a newly-formed, limited-purpose, bankruptcy-remote indirect subsidiary of European Wax Center, EWC Master Issuer LLC is a privately placed securitization transaction.
The refinancing transaction is also expected to include a $40 million variable funding note facility.
The company expects the proceeds to be about $374 million which will be used to repay existing debt and to fund a one-time special dividend to stockholders.
The transaction is expected to close in April 2022.
Price Action: EWCZ shares closed lower by 1.36% at $31.19 on Monday.