Revlon plans $2.6 billion in financing with Elizabeth Arden purchase

By Sara Rosenberg

New York, June 16 – Revlon Inc. has received a commitment for about $2.6 billion in financing to fund the acquisition of Elizabeth Arden Inc. and to refinance Elizabeth Arden’s existing debt, as well as repay Revlon’s existing term loan and revolving credit facility, according to a news release.

Bank of America Merrill Lynch and Citigroup Global Markets Inc. are the lead banks on the financing.

Revlon’s existing senior notes will remain outstanding.

Assuming full realization of expected multi-year synergies and cost reductions of about $140 million, pro forma leverage is expected to be about 4.2 times net debt/adjusted EBITDA by the end of 2016.

Under the agreement, Elizabeth Arden is being bought for $14.00 per share in cash, representing an enterprise value of around $870 million.

Closing is expected by year-end, subject approval by Elizabeth Arden’s shareholders, regulatory clearances and customary conditions.

Revlon is a New York-based beauty company. Elizabeth Arden is a prestige beauty products company.

© 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.