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Revlon postpones credit facility refinancing
New York, June 2 - Revlon, Inc. said it has postponed the refinancing of its credit facility.
The delay is linked to a similar move for a planned $75 million equity offering. The stock sale will now take place later this year or early in 2007.
MacAndrews & Forbes, Revlon's principal shareholder, has agreed to extend its backstop commitment for the equity financing until the transaction is completed.
An $87 million line of credit from MacAndrews & Forbes will also remain in place until the stock sale is completed.
Citigroup and JPMorgan were to have been the lead banks on the deal, with Citi the left lead.
The facility was to have included a $160 million six-year revolver talked at Libor plus 150 basis points and an $800 million seven-year term loan B talked at Libor plus 300 bps, a market source said at the time.
Revlon also announced Friday that it expects strong revenue growth in 2006, but lower than previously planned.
It attributed the reduced forecast to "less robust growth from Vital Radiance and Almay due to stepped up competitive activity, as well as less effectiveness from certain of the company's revenue-driving actions."
Revlon said it "will work with its retail partners to optimize the new brand's productivity and retail presentation, which could result in the reconfiguration or reduction of the Vital Radiance retail display space in certain retailers."
Based on the revised revenue outlook, adjusted EBITDA is now expected to be at or below 2005 levels, with a significant impact on the second quarter.
Revlon is a New York-based manufacturer, marketer and seller of cosmetics, skincare, fragrances and personal care products.
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