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Amendment Enhances Financial Flexibility
EL PASO, Texas — Helen of Troy Limited (NASDAQ: HELE), a global player in branded consumer products spanning home, outdoor, beauty, and wellness, announced an amendment to its existing credit facility on November 25, 2025. The initial facility, established on February 15, 2024, has been revamped to provide enhanced financial agility amid evolving market dynamics.
The Amendment introduces a temporary relaxation of the maximum Leverage Ratio, offering the company breathing room in its debt management. Furthermore, it refines the Interest Coverage Ratio by shifting from an EBIT (Earnings Before Interest and Taxes) to an EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) metric. This shift is significant as EBITDA provides a broader view of operational profitability, potentially reflecting the company’s cash-generating capabilities more accurately. Analytically, this could signal a strategic move to present a more favorable financial picture to investors, especially if the company anticipates fluctuations in its depreciation and amortization expenses.
Beyond adjustments to financial ratios, the agreement also reduces the revolving credit facility from $1.0 billion to $750 million. This move suggests a recalibration of Helen of Troy’s immediate borrowing needs, possibly reflecting a stronger cash position or a more conservative outlook on near-term investment opportunities. The amendment also adds an interest margin tier for a net leverage ratio of 4x or greater, introducing a pricing mechanism that reflects the increased risk associated with potentially higher leverage levels.
Brian L. Grass, Chief Financial Officer of Helen of Troy, commented, “As anticipated and previously discussed, we collaborated with Bank of America and our lender group to amend our credit facility under favorable terms. The adjustments to the Leverage Ratio and Interest Coverage Ratio offer enhanced flexibility to navigate the current macroeconomic climate. The reduction in the revolving credit facility commitment isn’t expected to impact borrowing capacity. This amendment underscores the strength of our relationship with Bank of America and our lending partners.”
This amendment arrives at a critical juncture, as consumer goods companies navigate supply chain disruptions, inflationary pressures, and shifts in consumer demand. The enhanced financial flexibility could provide Helen of Troy with the resources to pursue strategic acquisitions, invest in research and development, or weather potential economic headwinds.
Interested parties can find more information on the credit facility amendment in Exhibit 10.1 of Helen of Troy Limited’s Current Report on Form 8-K.
About Helen of Troy Limited
Helen of Troy Limited (NASDAQ: HELE) is a global consumer products company offering creative products and solutions for its customers through a diversified portfolio of well-recognized and widely-trusted brands, including OXO, Hydro Flask, Osprey, Vicks, Braun, Honeywell, PUR, Hot Tools, Drybar, Curlsmith, Revlon, and Olive & June. All trademarks herein belong to Helen of Troy Limited (or its subsidiaries) and/or are used under license from their respective licensors.
Forward-Looking Statements
Certain statements made by Helen of Troy Limited may constitute “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. These statements address expectations and assumptions about future operating results, and are subject to various risks and uncertainties, many of which are beyond the Company’s control. There can be no assurance that the Company will realize these expectations or that these assumptions will prove correct. Risks include, but are not limited to those outlined in the Company’s SEC filings, including the Form 10-K for the year ended February 28, 2025.
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