Revlon reduces debt by $38.3 million in 1Q, pays down 9½% notes, loan

By Jennifer Lanning Drey

Portland, Ore., April 30 - Revlon, Inc. reduced total debt by $38.3 million during the first quarter through repurchases of term loan debt and its 9½% senior notes, Alan Ennis, the company's chief financial officer, reported Thursday during Revlon's quarterly earnings conference call.

Specifically, Revlon repaid $18.7 million to its senior secured term loan debt and bought back $23.9 million principal amount of the 9½% senior notes.

At the end of the quarter, Revlon had $815 million outstanding on the term loan and $336.1 million of the notes outstanding.

Total debt at March 31 was $1.29 billion.

Revlon's quarter-end liquidity consisted of $120.5 million of unused borrowing capacity and $27 million of cash and cash equivalents. Outstanding borrowings under its revolving credit facility were $4.0 million.

During the quarter, the company generated operating cash flow of $17.3 million, up from $10.7 million in the comparable prior-year period. Free cash flow was $17.5 million, compared with $14.6 million in the first quarter of 2008.

Revlon reported first-quarter net sales of $303.3 million, compared with net sales of $311.7 million in the prior-year period. Excluding unfavorable foreign currency fluctuations, net sales were up 3.8%.

Adjusted EBITDA decreased to $49.1 million, down from $57.5 million in the year-ago period.

Revlon's management said it was unable to comment or provide further details on shareholder MacAndrews & Forbes Holdings Inc. proposal to contribute to Revlon $75 million of the $107 million senior subordinated term loan that is due to it from Revlon's wholly owned subsidiary, Revlon Consumer Products Corp.

Revlon makes cosmetics and other personal care products and is based in New York.

© 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.