Revlon adds $41.5 million to credit facility after end of quarter

By Devika Patel

Knoxville, Tenn., May 10 – Revlon, Inc. boosted the capacity under its credit facilities following the end of the last quarter to provide $41.5 million of additional liquidity.

“We have increased our borrowing capacity under our existing credit facilities after March 31,” chief financial officer Victoria Dolan said on the company’s first quarter ended March 31 earnings conference call on Thursday.

“We entered into an amended and restated credit agreement that provides an additional $41.5 million tranche of financing under our amended revolving credit facility.

“If the changes we made to our credit facility since the end of the first quarter had been in place as of March 31, 2018, we would have increased our borrowing capacity from $55 million to approximately $100 million,” Dolan said.

Adjusted EBITDA for the quarter was $4.2 million, compared to $31.6 million in the prior-year period, representing an 86.7% decrease.

As of March 31, 2018, the company had drawn $240.8 million on its revolving credit facility and had $110.7 million of liquidity, consisting of $55.7 million of unrestricted cash and cash equivalents, compared to $87.1 million as of Dec. 31, 2017, as well as $55 million in available borrowing capacity under the revolving credit facility.

Long-term debt was $2,651,500,000 as of March 31, 2018, compared to $2,653,700,000 as of Dec. 31, 2017.

On April 17, Revlon’s direct wholly owned operating subsidiary, Revlon Consumer Products Corp., amended its asset-based revolving credit agreement to provide for a new $41.5 million senior secured first-in, last-out tranche B.

Additionally, the existing $400 million tranche under the revolver became a senior secured last-in, first-out tranche A.

Tranche B matures on April 17, 2019. Tranche A continues to mature on the earlier of Sept. 7, 2021 and 91 days prior to the maturity of Revlon Consumer Products’ 5¾% senior notes, if on that date any of the notes remain outstanding and the company’s available liquidity does not exceed the total principal amount of its then outstanding notes by at least $200 million.

Borrowings for tranche A bear interest at Libor plus 125 basis points to 175 bps, and borrowings for tranche B bear interest at Libor plus 250 bps to 300 bps, in each case depending on average excess availability. Initial interest on tranche A is Libor plus 150 bps.

The commitment fee is 25 bps for any unused amounts under tranche A and 50 bps for any unused amounts under tranche B.

Citibank, NA is the administrative agent and collateral agent.

Citigroup Global Markets Inc., Merrill Lynch, Pierce, Fenner & Smith Inc. and Wells Fargo Bank, NA are joint lead arrangers. Citigroup, Merrill Lynch, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Macquarie Capital (USA) Inc., Wells Fargo and Barclays Bank plc are joint bookrunners.

Merrill Lynch is the syndication agent and Credit Suisse and Deutsche Bank are co-documentation agents.

Revlon is a New York-based beauty company.

© 2015 Prospect News.
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