Business
European Wax Center, Inc. Prices $400 Million Securitized Financing Facility
PLANO, Texas, March 28, 2022 (GLOBE NEWSWIRE) -- European Wax Center, Inc. (NASDAQ:EWCZ) (together with its subsidiaries, the “Company”) today announced that
About this update from European Wax Center, Inc.
[{"type":"text","content":"PLANO, Texas, March 28, 2022 (GLOBE NEWSWIRE) -- European Wax Center, Inc. (NASDAQ:EWCZ) (together with its subsidiaries, the “Company”) today announced that it has priced $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, an aggregate principal amount of $400 million and a fixed interest rate of 5.50% per annum, payable quarterly. The Class A-2 Notes are expected to be issued by EWC Master Issuer LLC, a newly-formed, limited-purpose, bankruptcy remote indirect subsidiary of European Wax Center, Inc. in a privately placed securitization transaction. In addition to the Class A-2 Notes, the refinancing transaction is also expected to include a $40 million variable funding note facility (the “Variable Funding Notes”). As of the closing, none of the Variable Funding Notes are expected to be drawn. The Company estimates that the net proceeds of the Class A-2 Notes after deducting transaction expenses and original issue discount will be approximately $374 million. The net proceeds are expected to be used: to repay all of the existing indebtedness under the existing 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. The Company expects the Class A-2 Notes and the Variable Funding Notes transactions to close in April 2022, subject to satisfaction of various closing conditions. There can be no assurance regarding the timing of closing or that the sale of the Class A-2 Notes will be completed. The Company plans to update its financial outlook provided March 15, 2022 upon closing of the transactions. 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. Abou...