European Wax enters into $220 million credit facility

Chicago, Aug. 9 – European Wax Center, Inc.’s wholly-owned subsidiaries entered into a $220 million credit agreement on Monday with Bank of America, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The borrowers are listed as EW Intermediate Holdco, LLC and EW Holdco, LLC.

The new facility consists of a $40 million revolver, $5 million of which may be a letter of credit facility, and a $180 million term loan.

The maturity date is Aug. 9, 2026.

Proceeds will be used to refinance debt under the company’s existing credit agreement and for general corporate purposes.

The commitment fee on the revolver will range from 30 basis points to 45 bps, depending on the total net leverage ratio.

The margin on Libor loans will range from 200 bps to 350 bps. The initial margin until Dec. 31 is 300 bps.

Bank of America is also listed as the collateral agent, letter of credit issuer and a lender.

Joint lead arrangers and bookrunners are BofA Securities, Inc., Morgan Stanley Senior Funding, Inc., Jefferies Finance LLC, Truist Securities, Inc., Citibank, NA and Guggenheim Securities, LLC.

The company repaid and terminated its existing credit agreement on the closing date, originally from Sept. 25, 2018, with Truist Bank as administrative agent.

European Wax Center is a chain of hair removal salons that offers waxing services. Headquarters are in Plano, Tex.

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