S&P ups Revlon, rates loan CCC

S&P said it raised Revlon Inc. to CCC- from SD, following its refinancing. The agency, however, said it still sees the company’s capital structure as unsustainable.

“We believe volatile market and business conditions created by the pandemic reduce the likelihood of the company addressing its debt maturities in a fashion that would provide lenders with the full promise of the original security,” the agency said in a press release.

Concurrently, S&P assigned a CCC issue-level rating with a 2 recovery rating to the company’s $880 million new money term loan (2020 BrandCo facility) due in June 2025.

The agency also assigned a CC issue-level ratings with 5 recovery ratings to the company’s $950 million roll-up term loan (roll-up BrandCo Facility) due in 2025 and to the $270.1 million remaining balances of the roll-up secured term loans (including $3 million of a junior roll-up) that were extended to 2025.

S&P also raised the rating on the $516.9 million remaining balance of the nonextended portion of the company’s $1.8 billion 2016 term loan to CC from D and revised the recovery rating on this tranche to 5 from 4. This tranche’s maturity is unchanged at September 2023.

Lastly, S&P affirmed the C issue-level ratings on the company’s two tranches of senior unsecured notes due in February 2021 and August 2024 and revised the recovery ratings to 6 from 5.

The outlook is negative.

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