Revlon lines up $325 million exit loan via MidCap, ups exit term loan

By Sarah Lizee

Olympia, Wash., April 25 – Revlon, Inc. subsidiary Revlon Consumer Products Corp. entered into a commitment letter with MidCap Financial Trust for an up to $325 million senior secured asset-based revolving loan facility, according to an 8-K filed Tuesday with the Securities and Exchange Commission.

The MidCap commitment letter provides for post-emergence financing, subject to a customary borrowing base. The loan will be used to refinance the company’s debtor-in-possession facility with MidCap.

The MidCap exit facility bears interest at SOFR plus 450 basis points per annum. There is a 50 bps unused line fee.

The facility is scheduled to mature on the earlier of three years from the closing date, subject to two one-year extensions, and 91 days prior to the maturity of the company’s term loan exit financing to the extent any portion of the term loan exit financing is outstanding on that date.

Loans under the MidCap exit facility are not subject to amortization.

Closing is subject to consummation of the company’s Chapter 11 plan.

As previously reported, Revlon’s plan of reorganization was confirmed on April 3. The company is hoping to emerge by May 2.

Exit term loan upsize

The company also amended a debt commitment letter, under which some lenders agreed to fund a new senior secured first-lien term loan facility upon emergence, to increase the size to $275 million from $200 million, and to extend the termination event milestone to May 31 from April 28.

Other milestone adjustments

Each of the company’s DIP facilities with MidCap and Jefferies Finance LLC as administrative and collateral agents were also amended to extend the plan effective date milestone to May 31 from April 28.

And, the company’s restructuring support agreement and its $670 million equity rights offering backstop commitment agreement were each amended to extend the plan effective date milestone to May 31 from April 28.

The hair color products and cosmetics company is based in New York. The company filed bankruptcy on June 15, 2022 under Chapter 11 case number 22-10760.

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