Revlon launches $800 million term loan at Libor plus 400 bps, OID 99

By Sara Rosenberg

New York, Feb. 25 - Revlon Consumer Products Corp. launched its $800 million seven-year term loan on Thursday with price talk of Libor plus 400 basis points with a 2% Libor floor and an original issue discount of 99, according to a market source.

In addition, the company's $140 million four-year asset-based revolver is being talked at Libor plus 300 bps with a 75 bps commitment fee and no Libor floor.

Citigroup is the left lead bank on the $940 million deal.

Amortization on the term loan is 0.25% per quarter with the balance due at maturity.

Financial covenants under the term loan include a maximum senior first-lien secured leverage ratio of 4.0 to 1.0, while financial covenants under the revolver include a springing fixed-charge coverage ratio of 1.0 to 1.0 if excess availability is less than $20 million.

Proceeds will be used to refinance an existing credit facility, which, at Dec. 31, had $815 million outstanding under the term loan and zero drawn under the revolver.

Revlon is a New York-based cosmetics, hair color, beauty tools, fragrances, skincare, anti-perspirants/deodorants and beauty care products company.

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