Sally Beauty Supply 2006 Annual Report Download - page 88

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Table of Contents
Sally Holdings, Inc. and Subsidiaries
(A Wholly-Owned Subsidiary of Alberto-Culver Company)
Notes to Consolidated Financial Statements
Details of the debt issued at November 16, 2006 is as follows (in thousands):
Maturity dates Interest
Amount (fiscal year) rates
Revolving credit facilities $ 70,000 2011 (i) PRIME and up to 0.50% or;
(ii) LIBOR plus (1.0% to 1.50%)
Term loan A
150,000
2012
(i) PRIME plus (1.00% to 1.50%)
or;
(ii) LIBOR plus (2.00% to 2.50%)
Term loan B
920,000
2013
(i) PRIME plus (1.25% to 1.50%)
or;
(ii) LIBOR plus (2.25% to 2.50)%
Total $ 1,140,000
Senior notes $ 430,000 2014 9.25%
Senior subordinated notes 280,000 2016 10.50%
Total $ 710,000
On November 17, 2006, Sally Beauty Holdings, Inc. had 180,050,492 shares of stock issued and outstanding and commenced regular-
way trading on the New York Stock Exchange (NYSE) as an independent company under the symbol SBH.
On November 24, 2006, the Company entered into two interest rate swap agreements with a notional amount of $150.0 million and
$350.0 million. These agreements expire in two and three years, respectively. Both agreements allow the Company to convert a
portion of its variable rate interest to a fixed rate at 4.9975% plus (2.00% to 2.50%) and 4.94% plus (2.25% to 2.50%), respectively.
On December 19, 2006, the Company announced that (1) BSG, other than its Armstrong-McCall division, will not retain its rights to
distribute the professional products of L’ Oreal through its distributor sales consultants (effective January 30, 2007, with exclusivity
ending December 31, 2006) or in its stores on an exclusive basis (effective January 1, 2007) in those geographic areas within the
U.S. in which BSG currently has distribution rights, and (2) BSG’ s Armstrong McCall division will not retain the rights to distribute
Redken professional products through distributor sales consultants or its stores. In replacement of these rights, BSG entered into long-
term agreements with L’ Oreal under which, as of January 1, 2007, BSG will have non-exclusive rights to distribute the same L’ Oreal
professional products in its stores that it previously had exclusive rights to in its stores and through its sales consultants. Armstrong
McCall will retain its exclusive rights to distribute Matrix professional products in its territories, and BSG will retain exclusive rights
to distribute Matrix products in its stores and by its distributor sales consultants in its BSG Canada territory. We expect the impact of
the loss of BSG’ s exclusive rights to distribute L’ Oreal professional products in BSG stores and by its distributor sales consultants to
negatively impact our consolidated revenue by approximately $110 million during the last nine months of our 2007 fiscal year. This
number includes anticipated ancillary impact on revenue from other products that may be indirectly affected by these developments.
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