Sally Beauty Announces Senior Notes Offering

DENTON, Texas--(BUSINESS WIRE)-- Sally Holdings LLC (the “Company”), a wholly-owned subsidiary of Sally Beauty Holdings, Inc. (NYSE: SBH), today announced that it intends to sell, in a registered public offering, $200 million aggregate principal amount of Senior Notes due 2023 (the “Senior Notes”). The Senior Notes will be guaranteed by Sally Beauty Holdings, Inc., Sally Investment Holdings LLC and certain of the Company’s domestic subsidiaries who have guaranteed obligations under its senior secured revolving credit facility and its existing notes.

The Company intends to use the net proceeds from this offering to repay in full the outstanding borrowings under the Company’s senior secured revolving credit facility. The Company intends to use the remainder of the net proceeds from the offering for general corporate purposes.

BofA Merrill Lynch, J.P. Morgan, Wells Fargo Securities, Credit Suisse, Deutsche Bank Securities, Goldman, Sachs & Co., and RBC Capital Markets are serving as joint book-running managers for the offering.

A shelf registration statement (including a prospectus and a preliminary prospectus supplement) relating to the Senior Notes offering has previously been filed with the Securities and Exchange Commission and has become effective. Before investing, you should read the prospectus, the preliminary prospectus supplement and other documents filed with the Securities and Exchange Commission 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 Securities and Exchange Commission'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.

About Sally Beauty Holdings, Inc.

Sally Beauty Holdings, Inc., is an international specialty retailer and distributor of professional beauty supplies with revenues of $3.5 billion annually. Through the Sally Beauty Supply and Beauty Systems Group businesses, the Company sells and distributes through 4,500 stores, including approximately 200 franchised units, throughout the United States, the United Kingdom, Belgium, Chile, France, the Netherlands, Canada, Puerto Rico, Mexico, Ireland, Spain and Germany. Sally Beauty Supply stores offer more than 6,000 products for hair, skin, and nails through professional lines such as Clairol, L’Oreal, Wella and Conair, as well as an extensive selection of proprietary merchandise. Beauty Systems Group stores, branded as CosmoProf or Armstrong McCall stores, along with its outside sales consultants, sell up to 9,800 professionally branded products including Paul Mitchell, Wella, Sebastian, Goldwell, Joico, and Aquage which are targeted exclusively for professional and salon use and resale to their customers.

Cautionary Notice Regarding Forward-Looking Statements

Any statements of the Company’s expectations in this press release constitute “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Such statements, including but not limited to, statements regarding senior notes offering, are based on currently available information and are subject to various risks and uncertainties that could cause actual results to differ materially from the Company’s present expectations.

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.

Factors that could cause actual events or results to differ materially from the events or results described in the forward-looking statements can be found in our most recent Annual Report on Form 10-K for the fiscal year ended September 30, 2012, as filed with the Securities and Exchange Commission. 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 Merrill Lynch
222 Broadway
New York, NY 10038
Attention: Prospectus Department
Email: [email protected]

J.P. Morgan
c/o Broadridge Financial Solutions
1155 Long Island Avenue
Edgewood, NY 11717
Attention: Post Sale Fulfillment
Telephone: 866-803-9204

Wells Fargo Securities, LLC
Attn: Client Support
550 South Tryon Street
7th Floor MAC D1086-070
Charlotte, NC 28202
Telephone: (800) 326-5897
Email: [email protected]

Credit Suisse
Credit Suisse Prospectus Department,
One Madison Avenue
New York, New York 10010
Telephone: 1-800-221-1037

Deutsche Bank Securities
60 Wall Street
New York, NY 10005-2836
Attention: Prospectus Group
Telephone: 1-800-503-4611
Email: [email protected]

Goldman, Sachs & Co.
Prospectus Department
200 West Street
New York, NY 10282
Telephone: 1-866-471-2526, facsimile: 212-902-9316
Email: [email protected]

RBC Capital Markets
Attention: High Yield Capital Markets
Three World Financial Center
200 Vesey Street, 10th Floor
New York, NY 10281
Telephone: 1-877-280-1299
Email: [email protected]

Sally Beauty Holdings, Inc.
Karen Fugate, 940-297-3877

Source: Sally Beauty Holdings, Inc.