Revlon: $100 million rights offering expires, oversubscribed

By Lisa Kerner

Charlotte, N.C., Jan. 22 - Revlon, Inc. said the subscription period for its $100 million rights offering and related private placement launched on Dec. 18 has expired and that the offering was "significantly oversubscribed."

Subscribers in the rights offering sought to purchase 72.1 million shares of class A common stock at $1.05 per share, or 34.3 million shares in excess of the 37.8 million shares offered to the public.

In a related private placement, majority stockholder MacAndrews & Forbes Holdings Inc. will purchase at $1.05 each about 57.3 million shares, the amount it would otherwise have been entitled to subscribe for in the rights offering under its basic subscription privilege.

About $50 million of the rights offering and private placement proceeds will be used by Revlon and Revlon Consumer Products Corp. to redeem $50 million principal amount of the 8 5/8% senior subordinated notes due 2008.

Remaining proceeds will be used to repay $50 million of the debt outstanding under Revlon Consumer Products' $160 million revolving credit facility, according to a company news release.

The New York-based cosmetics company will issue approximately 95.2 million new shares of its class A common stock, for a total of more than 476.7 million shares of class A stock outstanding.

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