Revlon reduces Libor floor on $800 million term loan to 1.25%

By Sara Rosenberg

New York, May 12 - Revlon Consumer Products Corp. lowered the Libor floor on its $800 million 61/2-year term loan (Ba3) to 1.25% from 1.5%, according to a market source.

Pricing of Libor plus 350 basis points with an original issue discount of 99½ and 101 soft call protection for one year were left unchanged.

Recommitments are due at the close of business on Friday.

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 adjusted EBITDA as of March 31 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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