Revlon Consumer launches $800 million term loan at Libor plus 350 bps

By Sara Rosenberg

New York, May 4 - Revlon Consumer Products Corp. launched its $800 million 61/2-year term loan on Wednesday with price talk of Libor plus 350 basis points with a 1.5% Libor floor and an original issue discount of 991/2, according to a market source.

Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Wells Fargo Securities LLC and Natixis are the lead banks on the deal.

The term loan includes a $300 million accordion feature, subject to 50 bps Most Favored Nation.

Amortization is 0.25% per quarter, with the balance due at maturity.

Covenants include a maximum first-lien secured leverage ratio of 4.0 times.

Proceeds will be used to refinance the company's $792 million term loan due March 2015 that was obtained in 2010.

Pricing on the existing term loan is Libor plus 400 bps with a 2% Libor floor, and it was sold at an original issue discount of 981/4.

Total first-lien secured debt to latest 12 months as of March 31 adjusted EBITDA is 2.9 times and total debt to LTM March 31 adjusted EBITDA is 4.6 times.

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

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