UPDATE 3-Regis to offer shares, notes to repay debt; stock sinks

* To offer 11.5 mln shares, $125 mln in convertible notes

* Sees Q4 charge related to UK store closures

* To lower fixed charge coverage ratio to 1.3

* Q4 sales $625 mln vs est $617.8 mln

* Shares plummet as much as 23 pct (Adds details, analyst comment, stock movement)

By Amitha Rajan

BANGALORE, July 6 (Reuters) - Hair-Salon operator Regis Corp (RGS.N) set plans for a dilutive common stock and notes offering, to pay down $267 million in debt and amended its credit facility seeking relief from certain covenants, sending its shares tumbling as much as 23 percent.

Regis has had to cut capital expenditures, close underperforming stores and sell its loss-making Trade Secret retail-product division, as its middle-income consumers reduce the frequency of visits to the salon amid the economic downturn.

The company, which had about 43 million shares outstanding as per its latest quarterly filing, said it intends to offer about 11.5 million shares and $125 million aggregate principal amount of convertible senior notes due 2014.