S&P rates Revlon loan B+

Standard & Poor's said it assigned to Revlon Consumer Products Corp.'s proposed new $800 million senior secured term loan facility a B+ rating, one notch above its corporate credit rating. The recovery rating is 2, indicating an expectation of 70% to 90% recovery in the event of a default. The rating on its existing 9¾% senior secured notes remains at B-, one notch below the corporate credit rating with a recovery rating of 5, indicating an expectation of 10% to 30% recovery in the event of a default.

The company will use the proceeds to refinance its existing $815 million senior secured term loan B, the agency said. Revlon also is planning to issue a new $140 million asset-based revolving credit facility to replace its $160 million existing asset-based revolving credit facility, S&P said.

The ratings reflect its strong brand names, participation in the competitive mass-market cosmetics industry, highly leveraged capital structure and positive operating momentum, the agency said.

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