Revlon on Track to Close $1.8 Billion Debt-Refinancing Package
(Bloomberg) -- Revlon Inc. is closing in on a $1.8 billion refinancing package that would rework a majority of its debt load, according to people with knowledge of the situation.
The cosmetics company is expected to have enough support from its backers and intends to close the refinancing by Friday’s 5 p.m. New York-time deadline, said the people, asking not to be identified discussing a private matter. The cutoff had been pushed back to allow more time for negotiations to take place and lenders to sign on.
A representative for Revlon declined to comment.
The refinancing is the latest effort to ease obligations at the company controlled by billionaire Ronald Perelman and buy more time to execute a turnaround. It replaces a smaller $850 million package arranged earlier by Jefferies Financial Group Inc.
The company also arranged a separate $65 million revolving credit facility with certain lenders that was drawn at closing, the people said. Proceeds will be used to bolster liquidity as it rides out the loss of revenue caused by the coronavirus 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 over 150 countries.
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