Company: SBH
Filing Date: 2025-02-13
Form Type: 10-Q
Source: 0000950170-25-019869
Chunk: 32

Company: Sally Beauty Holdings, Inc.
Filing Date: 2025-02-13
Form: 10-Q
Item: Part I, Item 2
Chunk 32
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 we may from time to time draw funds under the ABL facility for general corporate purposes including funding of capital expenditures, acquisitions, paying down other debt and share repurchases. Amounts 

19

drawn on our ABL facility are generally paid down with cash provided by our operating activities. During the three months ended December 31, 2024, the weighted average interest rate on our borrowings under the ABL facility was 7.0%. 

We are currently in compliance with the agreements and instruments governing our debt, including our financial covenants. 

      Guarantor Financial Information

Our 2032 Senior Notes were issued by our wholly-owned subsidiaries, Sally Holdings LLC and Sally Capital Inc. (together, the “Issuers”). The notes are unsecured debt instruments guaranteed by us and certain of our wholly-owned domestic subsidiaries (together, the “Guarantors”) and have certain restrictions on the ability of our subsidiaries to make certain restrictive payments to Sally Beauty. The guarantees are joint and several, and full and unconditional. Certain other subsidiaries, including our foreign subsidiaries, do not serve as guarantors. 

The following summarized consolidating financial information represents financial information for the Issuers and the Guarantors on a combined basis. All transactions and intercompany balances between these combined entities have been eliminated.

The following table presents the summarized balance sheets information for the Issuers and the Guarantors as of December 31, 2024, and September 30, 2024:

    (in thousands)
     
    December 31, 2024

    September 30, 2024

    Cash and cash equivalents
     
    $
    30,806

    $
    32,817

    Inventory
     
    $
    772,207

    $
    781,512

    Current assets
     
    $
    897,374

    $
    914,686

    Total assets
     
    $
    2,062,286

    $
    2,085,179

    Intercompany payable
     
    $
    10,748

    $
    6,939

    Current liabilities
     
    $
    451,548

    $
    479,052

    Total liabilities
     
    $
    1,865,473

    $
    1,951,874

The following table presents the summarized statement of earnings information for the Issuers and the Guarantors