Revlon abandons refinancing

New York, May 13 - Revlon, Inc. said it has abandoned its planned refinancing due to "current unfavorable market conditions."

The refinancing, which was to have been conducted through the New York cosmetics maker's Revlon Consumer Products Corp. subsidiary, included a tender offer for its existing bonds, a planned offering of senior notes and a new senior credit facility.

The tender offer was terminated and the company will not sell the new debt nor obtain a new credit facility.

Revlon said it will continue to monitor market conditions and continue to execute its growth plan.

The refinancing had been intended to lower interest costs and extend debt maturities.

Revlon had been expected to close in mid-May on a new $680 million credit facility (B2/B) via JPMorgan and Citigroup. The facility includes a $530 million six-year term B at Libor plus 425 basis points and a $150 million five-year revolver at Libor plus 325 basis points with a 50 basis points undrawn fee.

Revlon had also been planning a $400 million Rule 144A offering of senior unsecured notes due 2011 (CCC) with Citigroup as physical bookrunner. Talk had been for a yield of 10¼%-10½%.

Revlon had also, again via Revlon Consumer Products, been tendering for its outstanding 8 1/8% senior notes due 2006, its 9% senior notes due 2006 and its 12% senior secured notes due 2005, as well as the related consent solicitation for the 2005 notes.

The tender offer had been set to expire at 5 p.m. ET on May 21 after being extended from May 14.

As previously announced, through noon ET on May 12, holders had tendered $360.07 million of the 12% notes, $18.125 million of the 8 1/8% notes and $7.285 million of the 9% notes.

Revlon had been offering to purchase $555 million of notes, consisting of any and all of its $363 million principal amount of outstanding 12% notes, any and all of its $116.2 million principal amount of outstanding 8 1/8% notes and any and all of its $75.5 million principal amount of outstanding 9% notes.

Earlier this year, Revlon had successfully exchanged new equity for about $133 million of the $250 million originally issued 8 1/8% notes and about $175 million of the $250 million originally issued 9% notes as part of an overall exchange offer program completed March 22 that reduced its debt and increased its common equity by over $800 million.

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