Revlon gets $50 million credit line while in talks with lenders

By Marisa Wong

Morgantown, W.Va., June 22 – Revlon, Inc.’s wholly owned subsidiary, Revlon Consumer Products Corp., entered into a senior unsecured line of credit agreement on June 18 for a $50 million senior unsecured line of credit from majority stockholder MacAndrews & Forbes Inc., according to an 8-K filing with the Securities and Exchange Commission.

As previously disclosed, Revlon Consumer Products has been in negotiations with its lenders to expand its available liquidity. The subsidiary obtained the credit line from MacAndrews & Forbes because the discussions are still ongoing.

The line of credit allows Revlon Consumer Products to request loans and to use the proceeds for working capital and other general corporate purposes until the facility matures on Dec. 31.

The loan bears interest at an annual rate of 8%, which is payable quarterly in arrears in cash on Sept. 30 and at maturity. The company may, at its option, prepay any borrowings in whole or in part at any time prior to maturity, without premium or penalty.

Prepayments are required if the company enters into a new financing agreement or if it has available unrestricted cash that is not required for running its operations in the ordinary course of business.

Revlon is a New York-based beauty company.

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