Revlon plans $2.2 billion credit facility, $400 million notes

By Sara Rosenberg

New York, June 17 – Revlon Inc. released details in an 8-K filed with the Securities and Exchange Commission on Friday on the structure of its $2.6 billion debt financing commitment.

The company said that it plans on getting a $2.2 billion senior secured credit facility, split between a $1.8 billion term loan and a $400 million asset-based revolver, and that it intends to do a private placement of $400 million of senior unsecured notes.

Backing the notes is a commitment for an up to $400 million senior unsecured bridge loan.

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

Proceeds from the new debt will be used to fund the acquisition of Elizabeth Arden Inc. for $14.00 per share in cash, representing an enterprise value of around $870 million, to refinance Elizabeth Arden’s existing debt and to refinance Revlon’s existing term loan and revolver.

Revlon’s existing senior notes are expected to 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.

Closing is expected by year-end, subject to 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 based in Pembroke Pines, Fla.

© 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.