Why Regis Corporation Stock Is Soaring

Regis Corporation RGS shares are trading higher Tuesday after the company announced it has entered into a new senior secured credit facility with TCW Asset Management to refinance its existing debt.

The Details:

Regis said a $105 million term loan will replace the company’s existing debt, reducing outstanding indebtedness by more than $80 million and saving approximately $7 million in cash interest annually. In addition to the term loan, the company will have access to a $25 million revolving credit facility, with the term loan and credit facility maturing on June 24, 2029. 

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“This strategic refinancing is a significant milestone for Regis and the next step on our path towards sustainable long-term growth and value creation,” said Matthew Doctor, Regis Corporation’s CEO. 

“We conducted a comprehensive strategic review to address our capital structure, and we are pleased to have reached a refinancing agreement that will significantly reduce our debt, improve the health of our balance sheet and increase our financial flexibility so we can focus on transforming our business operations.”

Regis shares are soaring on heavy trading volume following the announcement with more than 13.5 million shares changing hands before the opening bell. According to data from Benzinga Pro, the stock’s 100-day average volume is less than 16,000 shares.

How To Buy RGS Stock:

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in Regis’ case, it is in the Consumer Discretionary sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

RGS Price Action: According to Benzinga Pro, Regis Corporation shares are up 197.8% at $15.10 at the time of publication Tuesday.

Image: Gerd Altmann from Pixabay