Avon Products amends revolver to update guaranties, release collateral

By Marisa Wong

Morgantown, W.Va., Aug. 2 – Avon Products, Inc. entered into a second amendment to its revolving credit agreement dated June 5, 2015 with Citibank, NA as administrative agent and collateral agent on Aug. 1, according to an 8-K filing with the Securities and Exchange Commission.

The amendment will become effective once the company issues at least $200 million of permitted pari passu secured refinancing debt. Avon announced on Monday that a subsidiary will sell $400 million of senior secured notes due 2022 to help finance its tender offer for some of its existing notes.

Once it takes effect, the amendment will permit Avon to provide a full recourse unsecured guaranty of the senior secured notes due 2022; amend and restate its guaranty so that it will provide a full recourse unsecured guaranty of Avon International Operations, Inc.’s obligations under the revolving credit agreement; and terminate Avon’s security agreement dated June 5, 2015, and release the security interest in the collateral pledged by Avon.

The beauty products company is based in New York.

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