Revlon buys further $0.4 million 12% notes in tender, calls remaining $64.5 million

New York, July 22 - Revlon Inc. and its Revlon Consumer Products Corp. subsidiary said Revlon Consumer Products bought a further $0.4 million principal amount of its 12% senior secured notes due 2005, completing the tender offer for the notes.

Revlon said the remaining $64.5 million principal amount will be redeemed under the terms of the note indenture. It did not disclose further details but said a notice of redemption will be sent to holders.

The $0.4 million of additional notes were tendered after the initial settlement but before the expiration.

Revlon said on July 9 it bought $298 million or 82% of its 12% senior secured notes due 2005 in the initial settlement of its tender offer for the security.

Funding for the purchase came from a newly completed $960 million credit facility from a syndicate led by Citicorp USA Inc. and Citigroup Global Markets Inc.

A further $292 million of borrowings on the facility were used to repay Revlon Consumer Products Corp.'s old facility.

In addition, $74 million was put in escrow to repurchase any further 12% notes that are tendered by the expiry of the offer at 5 p.m. ET July 21 and, if necessary, to redeem any remaining notes after that time.

With the purchase of the notes, the previously announced supplemental indenture to the notes became operative.

On July 8 Revlon said that it and its Revlon Consumer Products Corp. subsidiary had fixed the pricing of Revlon Consumer Products' tender for its 12% notes.

Holders who tendered before 5 p.m. ET July 8 will receive $1,122.24 per $1,000 principal amount of notes. Holders who tender after that time will receive $1,102.24 per $1,000 principal amount.

The price was fixed using a fixed spread of 75 basis points over the bid side yield at 2 p.m. ET July 8 of the 1.875% U.S. Treasury note due Nov. 30, 2005.

Revlon announced the tender on June 23, saying its Revlon Consumer Products subsidiary had begun a cash tender offer to purchase any and all of its $363 million principal amount of outstanding 12% notes as part of a previously announced series of refinancing transactions.

Revlon indicated that Revlon Consumer Products intends to redeem any 12% notes that remain outstanding following the tender offer at the redemption prices in the indenture.

Citigroup Global Markets Inc. is dealer manager for the tender offer and consent solicitation (800 558-3745 or collect at 212 723-6106). D.F. King & Co. Inc. is the information agent (800 949-2583 or collect at 212 269-5550).

© 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.