Revlon expects to need further credit facility amendment or waiver

New York, Nov. 14 - REV Holdings LLC said its Revlon Products Corp. will likely need a further amendment to or waiver of the EBITDA and leverage covenants in its credit facility after the existing waiver expires on Jan. 31, 2004.

The New York cosmetics company said it does not expect that its operating results will allow it to meet the covenants for the four quarters ending Dec. 31, 2003. The forecast includes the impact of the stabilization and growth phase of its plan.

Under the covenants, Revlon Products must achieve a minimum EBITDA of $230 million for each of the four consecutive fiscal quarters ending on Dec. 31, 2003 March 31, 2004, June 30, 2004 and Sept. 30, 2004 and $250 million for any four consecutive fiscal quarters ending Dec. 31, 2004 and onwards. The requirement at Dec. 31, 2003 is waived through Jan. 31, 2004.

Revlon Products must also comply with a maximum leverage ratio of 1.10:1.00 for any four consecutive fiscal quarters ending on or after Dec. 31, 2003. The requirement at Dec. 31, 2003 is waived.

The agreement also contains a $20 million minimum liquidity covenant.

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