Revlon amends loan to change covenants, extend maturity dates, increase rates and get new loan

By Sara Rosenberg

New York, Jan. 29 - Revlon Inc. amended its credit facility, essentially receiving a one-year extension of the waiver received last year to the EBITDA and some other financial covenants, extending the maturity of the $65 million loan provided by MacAndrews & Forbes to Revlon's wholly-owned subsidiary, Revlon Consumer Products Corp., to June 30, 2005 from Dec. 1, 2004, increasing the interest rate for loans by 25 basis points to Libor plus 550 basis points and closing on a new $125 million multiple draw term loan from MacAndrews & Forbes.

Under the amendment, financial covenants have been waived for the four fiscal quarters ending Dec. 31, 2003, eliminated for the first three quarters of 2004, and waived through Jan. 31, 2005 for the four fiscal quarters ending Dec. 31, 2004.

In addition, the amendment also continues the $20 million minimum liquidity covenant established in connection with the previous amendment.

Revlon Consumer Products' new $125 million multiple draw term loan, split between a $100 million and a $25 million senior unsecured loan, has substantially the same terms as the $100 million term loan extended by MacAndrews & Forbes in early 2003, bears payment-in-kind interest at 12% annually and has a final maturity of Dec. 1, 2005, if the final $25 million of the loan is repayable prior to maturity.

"I am delighted by the continued support of MacAndrews & Forbes and our bank group in the progress we are making at this very important time in the company's history. We have every confidence that the actions we are taking to strengthen the business are moving us toward our objective of achieving long-term profitable growth," said Jack Stahl, president and chief executive officer, in a company news release.

Citibank is the documentation agent, J.P. Morgan Securities Inc. is the arranger and JPMorgan Chase Bank is the administrative agent on the existing credit facility, according to an 8-K filed with the Securities and Exchange Commission on Thursday.

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

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