Revlon to issue $110 million equity by March 2006 to cut debt

New York, Sept. 8 - Revlon Inc. said it has committed to issue $110 million of equity by March 2006 with proceeds to go to reduce debt.

The planned stock offering is the third stage in an effort to improve its capital structure.

With that additional investment, the New York-based cosmetics company will have obtained more than $1 billion in new equity.

The commitment to an equity offering was disclosed in Revlon's presentation to the Prudential Back to School Conference on Wednesday.

Revlon has already carried out an equity-for-debt exchange and a debt refinancing this year.

Those transactions, the company said, provided "significant operating flexibility."

In March, Revlon exchanged $516 million of debt and preferred stock held by MacAndrews & Forbes into common equity, $196 million of debt held by Fidelity into common equity and $147 million of debt held by other bondholders into common equity.

In July, the company completed a refinancing which included a new $960 million credit facility with Citigroup. Revlon replaced its old credit facility and repurchased or redeemed its outstanding 12% senior secured notes, reducing interest expense and extending maturities.

© 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.