European Wax Center, Inc. Completes Refinancing Transaction

About this update from European Wax Center, Inc.

[{"type":"text","content":"PLANO, Texas, April 06, 2022 (GLOBE NEWSWIRE) -- European Wax Center, Inc. (NASDAQ:EWCZ) (together with its subsidiaries, the “Company”) today announced that it has completed its previously announced refinancing transaction. The new series of securitized notes include $400 million of Series 2022-1 Class A-2 Fixed Rate Senior Secured Notes (the “Class A-2 Notes”) with an anticipated repayment term of five years and a fixed interest rate of 5.5% per annum, payable quarterly. In addition to the Class A-2 Notes, the refinancing transaction includes a $40 million variable funding note facility (the “Variable Funding Notes”). As of the closing, none of the Variable Funding Notes have been drawn, but an undrawn letter of credit of approximately $5.6 million has been issued under the Variable Funding Notes. The net proceeds of the Class A-2 Notes after deducting transaction expenses and original issue discount were approximately $372 million. The net proceeds are expected to be used, among other things: to repay all of the existing indebtedness under the senior secured credit facilities. As of December 25, 2021, the Company had an outstanding principal amount of term loans under its senior secured credit facilities of $180.0 million; andto fund a one-time special dividend to stockholders. The timing and amount of any dividend, including whether to fund in part with available excess cash, remains subject to the determination of the Company’s Board of Directors. As a result of the refinancing transaction, the Company expects to incur incremental pre-tax interest expense of approximately $18 million in the second through fourth quarters of fiscal 2022. The Company is therefore updating its fiscal 2022 Adjusted Net Income outlook to $20 to $24 million from $35 million to $39 million. This press release does not constitute an offer to sell or the solicitation of an offer to buy the Notes or any other security. The Notes to be offered have not been, and will not be, registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act of 1933. About European Wax Center European Wax Center, Inc. (NASDAQ: EWCZ) is the largest and fastest-growing franchisor and operator of out-of-home waxing services in the United Sta...

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