Sally Beauty Completes Tender Offers for Senior Notes
- Over $60 Million of Senior Notes Tendered
- Fiscal Year 2019 Deleveraging Efforts Continue
DENTON, Texas--(BUSINESS WIRE)--
Sally Beauty Holdings, Inc. (NYSE: SBH) announced today the results of
its cash tender offers (the “Tender Offers”) to purchase up to
$100,000,000 in aggregate purchase price of 5.625 percent Senior Notes
due 2025 (the “2025 Notes”) and 5.500 percent Senior Notes due 2023 (the
“2023 Notes” and, together with the 2025 Notes, the “Notes”), in each
case issued by its indirect wholly-owned subsidiaries Sally Holdings LLC
and Sally Capital Inc. (collectively, “Sally Beauty”). The Tender
Offers, which were made pursuant to an Offer to Purchase dated February
19, 2019 (the “Offer to Purchase”), expired at 12:00 midnight, New York
City time, on March 18, 2019 (the “Expiration Date”).
“We are making excellent progress in our transformation, both with
investments in the business and in our efforts to reduce our overall
leverage levels. Completion of the tender offer is an important
milestone in these efforts, which will continue throughout Fiscal Year
2019,” said Chris Brickman, president and chief executive officer.
According to information received from Global Bondholder Services
Corporation, the Information and Tender Agent for the Tender Offer, as
of the Expiration Date, approximately $57.5 million aggregate principal
amount of 2025 Notes, and approximately $2.6 million aggregate principal
amount of 2023 Notes, was validly tendered and not validly withdrawn in
the Tender Offers.
All Notes that were validly tendered and not validly withdrawn prior to
the Expiration Date have been accepted for purchase.
Holders whose Notes were validly tendered and not withdrawn at or before
the Expiration Date will receive the applicable total consideration,
which includes a payment of $30.00 per $1,000 principal amount of the
Notes accepted for purchase. The settlement for Notes tendered after
March 4, 2019 and prior to the Expiration Date is expected to take place
on March 20, 2019, subject to the satisfaction or waiver of the
conditions described in the Offer to Purchase under the heading “Terms
of the Offers – Conditions of the Offers.”
The Tender Offers expired on the Expiration Date. No tenders submitted
after the Expiration Date will be valid.
This press release is neither an offer to purchase nor a solicitation of
an offer to sell securities. No offer, solicitation, purchase or sale
will be made in any jurisdiction in which such offer, solicitation, or
sale would be unlawful. The offer is being made solely pursuant to terms
and conditions set forth in the Offer to Purchase.
The dealer manager for the Tender Offers is BofA Merrill Lynch (the
“Dealer Manager”). Any questions regarding the terms of the Tender
Offers should be directed to the Dealer Manager, BofA Merrill Lynch at
(toll-free) 888-292-0070 or (collect) 980-388-3646. Any questions
regarding procedures for tendering Notes should be directed to the
Information Agent for the Tender Offers, Global Bondholder Services
Corporation, toll-free at 866-924-2200 (banks and brokers call (212)
430-3774) or 65 Broadway, Suite 404, New York, NY 10006.
Copies of the Offer to Purchase are available from the Information Agent
and Depositary and at the following web address: http://www.gbsc-usa.com/SBH/.
About Sally Beauty Holdings, Inc.
Sally Beauty Holdings, Inc. (NYSE: SBH) is an international specialty
retailer and distributor of professional beauty supplies with revenues
of approximately $3.9 billion annually. Through the Sally Beauty Supply
and Beauty Systems Group businesses, the Company sells and distributes
through 5,129 stores, including 180 franchised units, and has operations
throughout the United States, Puerto Rico, Canada, Mexico, Chile, Peru,
the United Kingdom, Ireland, Belgium, France, the Netherlands, Spain and
Germany. Sally Beauty Supply stores offer up to 8,000 products for hair
color, hair care, skin care, and nails through proprietary brands such
as Ion®, Generic Value Products®, Beyond the Zone®
and Silk Elements® as well as professional lines such as Wella®,
Clairol®, OPI®, Conair® and Hot Shot
Tools®. Beauty Systems Group stores, branded as CosmoProf or
Armstrong McCall stores, along with its outside sales consultants, sell
up to 10,500 professionally branded products including Paul Mitchell®,
Wella®, Matrix®, Schwarzkopf®, Kenra®,
Goldwell®, Joico® and CHI®, intended
for use in salons and for resale by salons to retail consumers.
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 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, but not limited to, the risks and uncertainties described in
our filings with the Securities and Exchange Commission, including our
most recent Annual Report on Form 10-K for the year ended September 30,
2018, 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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190319005928/en/
Investor Relations and Media Inquiries
Jeff Harkins
940.297.3877
Source: Sally Beauty Holdings, Inc.
