Revlon 'highly confident' of ability to refinance 8 5/8% notes

By Aaron Hochman-Zimmerman

New York, Aug. 8 - Revlon Inc. said it expects to be able to refinance without difficulty its $167 million of outstanding 8 5/8% senior subordinated notes ahead of their Feb. 1, 2008 maturity.

Despite some investor concerns about the condition of the high-yield market, Revlon is confident it will be in a position to refinance the remaining notes, executive vice president and chief financial officer, Alan Ennis said during the company's second quarter conference call.

"We remain highly confident that we can and will refinance these notes prior to their maturity," Ennis said.

Revlon reported a net loss of $11.3 million in the second quarter, an improvement over the $87.1 million loss posted in the first quarter.

Meanwhile the company's combined unutilized borrowing capacity and cash amounts to $181 million, Ennis said.

Of that, $100 million is available under a revolving loan, $50 million is available on a line of credit from McAndrews & Forbes and another $31 million is available cash.

At the end of June, the company's debt picture included $840 million from a term loan facility, $48 million under a revolver, the $167 million in 8 5/8% notes and $387 million in 9½% notes, Ennis said.

Revlon's management expects continued growth including $210 million of adjusted EBITDA for all of 2007.

In addition, "as we look forward to 2008 we believe that we have a strong offering of new product introductions," David Kennedy, president and chief executive officer, said.

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