Revlon Buys Time on $1.8 Billion Funding to Get Lenders on Board

(Bloomberg) -- Revlon Inc. extended the deadline for lenders to accept a $1.8 billion plan reworking the company’s debt load to allow more time for negotiations, according to people with knowledge of the situation.

The cosmetics company pushed out the date to approve the refinancing package to April 23 from April 17, said the people, asking not to be identified discussing a private matter. The deadline could be moved again if the company does not get the requisite 50% of the loan amount outstanding to participate.

Lenders opposing the deal, that collectively hold more than 51% of the loan amount, entered into a co-operative agreement, the people said. The proposed transaction requires consent from a majority of lenders for an amendment to the current credit facility in order for the new financing to take place.

A representative for Revlon declined to comment.

The refinancing plan is the latest by billionaire Ronald Perelman’s cosmetics empire to ease its debt load and buy it more time to focus on a business turnaround. It would replace a smaller $850 million package arranged earlier by Jefferies Financial Group Inc.

In opposition to the latest deal, a lender group of 35 firms sent a letter to administrative agent Citigroup Inc. asking the firm not to release the collateral on their loan holdings, Bloomberg reported. Discussions with the company to address its liabilities have been ongoing, but recently complicated by new headwinds presented by the coronavrius pandemic.

Revlon, controlled by Perelman’s MacAndrews & Forbes Inc., has struggled to remain relevant and stem falling sales amid competition from Estee Lauder Cos. and a host of smaller companies that have used social media to lure away customers. Revlon has more than 15 brands, including Elizabeth Arden and Elizabeth Taylor, that it markets in more than 150 countries.

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