Jafra Cosmetics to launch $100 million credit facility Friday

By Carlise Newman

Chicago, April 23 - Jafra Cosmetics International Inc. is expected to hold a bank meeting Friday for a new $100 million credit facility, according to a release from Credit Suisse First Boston.

CSFB is the administrative agent on the loan and Merrill Lynch is the syndication agent.

The loan consists of a $40 million five-year revolver and a $60 million five-year term loan A and is part of Jafra's previously reported recapitalization.

Interest rates have not yet been set.

Jafra is also issuing $175 million senior subordinated notes due 2011 via bookrunner Credit Suisse First Boston.

Proceeds from the recapitalization will be used to repay all outstanding borrowings under the current credit facility of Jafra International, redeem the existing 11¾% senior subordinated notes due 2008 of Jafra International and Jafra Distribution, and make a distribution to CDRJ Investments' equity holders, including Clayton, Dubilier & Rice Fund V, which owns 84% of CDRJ Investments' outstanding shares.

Jafra Cosmetics International is a direct seller of personal care products based in Westlake Village, Calif.

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