Revlon to repay $170 million subordinated term loan with asset sale and equity proceeds

By Sara Rosenberg

New York, Sept. 3 - Revlon Inc. plans on repaying its $170 million MacAndrews & Forbes senior subordinated term loan due Aug. 1, 2009 using proceeds from an asset sale and an equity rights offering, according to a news release.

The company is selling its Bozzano business in Brazil for about $93 million in net proceeds. Of the total net proceeds, $63 million will be used to pay down the subordinated term loan and the roughly $30 million remaining will be used for general corporate purposes.

Then, as early as the fourth quarter, the company plans on launching a $107 million equity rights offering that would allow stockholders to purchase additional shares of Revlon class A common stock. Proceeds from this offering will be used to fully repay the remaining balance under the subordinated term loan.

"By repaying the M&F term loan, we will eliminate our highest cost, nearest maturity debt, which carries an annual cash interest cost of almost $19 million. Improving our capital structure with this important step is consistent with a key aspect of our strategy," said David Kennedy, president and chief executive officer, in the release.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.