Revlon looks into refinancing alternatives including equity and debt issuance

By Sara Rosenberg

New York, Dec. 16 - Revlon Inc. said it is looking into alternatives to strengthen its balance sheet and increase equity, including the issuance of additional equity or debt securities for cash or in exchange for outstanding debt of its wholly-owned subsidiary, Revlon Consumer Products Corp.

Furthermore, the company announced that two loans from MacAndrews & Forbes Holdings Inc. were approved by the board of directors. The loans include a $25 million unsecured term loan available immediately at an interest rate of 12%, with no interest payable until final maturity on Dec. 1, 2005, and a $100 million senior unsecured term loan available beginning on Jan. 1, 2004 at an interest rate of 12%, with no interest payable until final maturity on Dec. 1, 2005, according to a company news release.

The $100 million loan requires consent from Revlon Consumer Products' credit facility banks, however the company anticipates receiving this consent in connection with an amendment and waiver of the credit agreement, anticipated to close before Jan. 31.

"I am pleased with the continued support of MacAndrews & Forbes and with the significant progress we have made in strengthening the fundamentals of our business, particularly our brands, our relationships with our retailers and our organizational capabilities," said Jack Stahl, president and chief executive officer, in the release.

"We believe that we are now positioned to undertake another aspect of our strategic plan by exploring ways to enhance our financial strength, increase equity and reduce debt and interest expense. We expect these actions will help us achieve our objective of profitable and sustainable growth over time."

Revlon is a New York cosmetics, skin care, fragrance, and personal care products company.

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