S&P assigns Revlon loan CC

S&P said it assigned Revlon Inc.’s new BrandCo second-lien term loan a CC rating with a 5 recovery rating.

The agency also upgraded Revlon’s issuer rating to CCC- from SD, reflecting the view of the company’s still unsustainable capital structure, very high debt service burden, near-term debt maturities and weak liquidity.

The agency also upgraded Revlon’s $915 million BrandCo new money term loan to CCC from CCC- and its roll-up term loans and legacy term loan to CC from C as a result of the higher issuer credit rating. S&P affirmed the C rating on the company’s senior unsecured notes.

“The notes exchange transaction modestly lowered the company’s interest expense and avoided springing maturities on its other debt, but it significantly weakened the company’s liquidity position,” S&P said in a press release. Revlon has other debt maturities it will need to address in 2021.

The outlook is negative.

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