Revlon readies launch of $2.2 billion credit facility for Thursday

By Sara Rosenberg

New York, July 13 – Revlon Consumer Products Corp. scheduled a bank meeting for 10 a.m. ET in New York on Thursday to launch its proposed $2.2 billion senior secured credit facility, according to a market source.

Citigroup Global Markets Inc. and Bank of America Merrill Lynch are the lead banks on the financing.

The facility consists of a $1.8 billion term loan B and a $400 million asset-based revolver.

Proceeds from the new debt will be used to fund the acquisition of Elizabeth Arden Inc. for $14 per share in cash, representing an enterprise value of around $870 million, to refinance Elizabeth Arden’s existing debt and to refinance Revlon’s existing term loan and revolver.

Based on filings with the Securities and Exchange Commission, the company is also expected to do a private placement of $400 million of senior unsecured notes with the acquisition.

Backing the notes is a commitment for an up to $400 million senior unsecured bridge loan.

Assuming full realization of expected multi-year synergies and cost reductions of about $140 million, pro forma leverage is expected to be about 4.2 times net debt/adjusted EBITDA by the end of 2016.

Closing is expected by year-end, subject to approval by Elizabeth Arden’s shareholders, regulatory clearances and customary conditions.

Revlon is a New York-based beauty company. Elizabeth Arden is a prestige beauty products company based in Pembroke Pines, Fla.

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