Revlon $680 million credit facility to come via JPMorgan, Citigroup

By Sara Rosenberg

New York, April 19 - Revlon Consumer Products Corp., a wholly-owned subsidiary of Revlon Inc., is expected to come to market with a proposed $680 million credit facility with JPMorgan and Citigroup leading the new deal. JPMorgan is the left lead bank on the transaction, according to a market source.

"It is our expectation the term loan will be approximately $530 million with an expected revolver facility of approximately $150 million," a company spokesperson told Prospect News on Monday.

"We expect that rates on the new credit agreement will be lower than our existing credit facility," the spokesperson added.

Proceeds from the credit facility, combined with proceeds from a proposed $400 million senior unsecured bond offering, will be used to refinance the company's existing credit facility of approximately $312 million and fund tender offers to purchase approximately $555 million of its notes, consisting of any and all of the $363 million principal amount outstanding of its 12% senior secured notes due 2005, any and all of the $116.2 million principal amount outstanding of its 8 1/8% senior notes due 2006, and any and all of the $75.5 million principal amount outstanding of its 9% senior notes due 2006, according to a company news release.

Successful completion of the credit facility and the bond offering are both conditions of the tender offers.

Revlon anticipates closing on the credit facility in mid May being that the tender offers and consent solicitation, in the case of the 12% senior secured notes, expire on May 14, the spokesperson concluded.

Revlon is a New York City-based manufacturer and seller of cosmetics and skin care, fragrances and personal care products.

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