Revlon Consumer Products to launch new term loan on Thursday morning

By Sara Rosenberg

New York, Aug. 14 - Revlon Consumer Products Corp. scheduled a call for 10 a.m. ET on Thursday to launch a new term loan, according to a market source.

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

As previously reported, the company launched earlier this week an amendment to its credit facility to allow for a $700 million incremental term loan and the $660 million acquisition of The Colomer Group from CVC Capital Partners.

Also, the amendment will modify the first-lien secured leverage ratio to 4.25 times from 4 times and increase the ABL to $240 million from $200 million.

In addition, the company is asking to delete the annual cap on asset sales so long as it obtains 75% in cash, change the limitation on restricted payments first-lien secured leverage ratio test to 3 times from 2.75 times and delete the $100 million cap on permitted acquisitions of non-loan parties and assets that do not become collateral.

Furthermore, the amendment will revise the limitation on payments on account of debt first-lien secured leverage ratio test to 3 times from 2.75 times, add $15 million of litigation and settlement costs to EBITDA and maintain the $200 million basket for additional senior notes.

Lenders are being offered a 25 bps amendment fee.

Consents are due on Friday, and the amendment is expected to be effective on Monday.

Citigroup is leading the amendment.

The acquisition of Colomer is expected to close in the fourth quarter, subject to customary conditions and regulatory approvals, and the cash purchase price is subject to adjustments through the closing date.

Pro forma for the acquisition, net leverage is anticipated to be 4.8 times.

Revlon is a New York-based cosmetics and accessories company. Colomer is a beauty care company focused on the professional salon channel.

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