Revlon to redeem 8 5/8% senior subordinated notes

By Angela McDaniels

Settle, Feb. 1 - Revlon Inc. said it will use the proceeds of an upcoming rights offering to redeem $110 million of its 8 5/8% senior subordinated notes in order to satisfy a requirement under Revlon Consumer Products Corp.'s bank credit agreement.

The rights will allow shareholders to purchase shares of class A common stock at a to-be-determined subscription price. Those who exercise their rights in full may also subscribe for additional shares at the same subscription price per share.

The company plans to distribute the subscription rights to holders of its class A and class B common stock before the end of March, according to a company news release.

If an insufficient number of shares is available to fully satisfy the over-subscription requests, Revlon said it will sell the available shares pro rata for the number of shares each rights holder purchases.

MacAndrews & Forbes Holdings Inc., Revlon's parent company, has agreed to purchase its pro rata share of the class A common stock and not to exercise its over-subscription privilege. It will, however, purchase any remaining shares of class A common stock offered but not purchased by other stockholders.

Revlon also said that it plans to hold a $75 million public offering by June 30, 2006, and that MacAndrews & Forbes' backstop obligations under the investment agreement and $87 million line of credit to Revlon Consumer Products Corp. will remain in effect until then.

Revlon is a cosmetics, skin care, fragrance and personal care products company based in New York.

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