Revlon reportedly launching refinancing plan
Revlon is reportedly launching a refinancing plan thanks to a $1.8 billion debt package from lenders, according to a source with knowledge of the deal.
However, some of Revlon’s lenders have objected to the company’s refinancing plans, claiming the company violated the terms of its debt agreements last year, as per a report by Bloomberg.
Revlon contends a default didn’t take place however, because the asset transfer was allowed under the debt documents with respect to the intellectual property of its American Crew brand.
Still, Revlon allegedly received the majority votes from lenders needed to approve the debt refinancing as of the deadline Friday, added the report.
According to the source, the makeup company has been working out the refinancing arrangement at the same time as the Revlon brand relaunched in China. The brand first exited China in 2014.
Most recently, the cosmetics maker has been struggling to attract younger clientele, while competing with bigger companies such as L'Oreal and Estee Lauder.
Revlon sales have declined for at least five quarters and it posted preliminary fourth-quarter revenue of $699.4 million, well below market estimates of $755.4 million. As of December 31, the company had long-term debt of $2.91 billion.
Last month, the parent company announced that it expected to save up to $230 million a year by 2022 end, mainly by eliminating nearly 1,000 positions, in a bid to improve profitability as it continues to explore options along with Goldman Sachs.
Moreover, the company entered into an agreement with Jefferies Finance LLC for $850 million in new finance to repay senior loans due in February 2021 and 2019 term loan.
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