Revlon notes skyrocket after completing exchange; Tenneco dips amid new offering

By James McCandless

San Antonio, Nov. 12 – Entering the latter half of a holiday-shortened week, the distressed space saw shifts in the retail and manufacturing spaces.

Revlon, Inc.’s notes skyrocketed after announcing the final results of a subsidiary’s exchange offer.

The 5¾% senior notes due 2021 jumped up 31 points to close at 93½ bid. The 6¼% senior notes due 2024 gained 3 points to close at 25 bid.

On Thursday morning, the New York-based cosmetics producer announced that $236.5 million of the outstanding $342,785,000 of the 2021 notes by subsidiary Revlon Consumer Products Corp. have been tendered under its offer to exchange for cash or a combination of cash and ABL FILO term loans and new BrandCo second-lien term loans, Prospect News reported.

The offer expired at 11:59 p.m. ET on Nov. 10.

With the completion of the exchange, the company is avoiding a potential Chapter 11 bankruptcy filing, which it had warned was possible.

In the automotive space, Tenneco Inc.’s paper dipped as the company prepares a $500 million offering of senior secured notes.

The existing 5% senior notes due 2026 fell 1 point to close at 83¾ bid.

The Lake Forest, Ill.-based auto parts assembler plans to use proceeds from the new deal to redeem all of its outstanding secured notes due 2022.

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