Message #11 From:
NewsBot Date: November 29, 2006 05:30:00 AM
REV News Revlon Announces Plans to Refinance Existing Credit Agreement
NEW YORK--(BUSINESS WIRE)--Revlon, Inc. (NYSE: REV), announced today that its wholly-owned
operating subsidiary, Revlon Consumer Products Corporation ("RCPC"),
plans to refinance its existing credit agreement as part of the
Company's overall plans to improve cash flow and strengthen its balance
sheet and capital structure.
As part of the refinancing, RCPC expects to refinance and replace its
existing $800 million term loan with a new 5-year $840 million term loan
facility (the "2006 Term Loan Facility") and amend its existing $160
million multi-currency revolving credit facility and extend its maturity
through the same 5-year period (the "2006 Revolving Credit Facility"
and, together with the 2006 Term Loan Facility, the "2006 Credit
Facilities"). It is expected that the 2006 Term Loan Facility would be
secured by substantially the same collateral package and guarantees that
secure RCPC's existing term loan facility and the 2006 Revolving Credit
Facility will continue to be secured by its existing collateral package
and guarantees.
While there can be no assurances that the 2006 Credit Facilities will be
finalized and closed, if RCPC completes this refinancing, the Company
believes that it will result in annual interest savings due to expected
lower interest margins, provide the Company with greater financial and
other covenant flexibility and extend the maturity dates of RCPC's
existing bank credit agreement.
RCPC expects to use the proceeds of the 2006 Credit Facilities to repay
in full the approximately $800 million of outstanding indebtedness (plus
accrued interest and a prepayment fee) under its existing term loan
facility. The balance of such proceeds is expected to be available for
general corporate purposes, after paying fees and expenses incurred in
connection with consummating the 2006 Credit Facilities.
RCPC expects to close and fund the 2006 Credit Facilities in late
December 2006. Consummation of the 2006 Credit Facilities transactions
is subject to a number of customary conditions, including, among other
things, the execution of definitive documentation, perfection of
security interests in collateral and that Revlon launch a rights
offering for at least $100 million in equity securities (although the
2006 Credit Facilities are not conditioned upon the consummation of such
rights offering).
Citicorp Global Markets Inc. has agreed to act as Sole Lead Arranger and
Sole Bookrunner, with Citicorp USA, Inc. acting as Administrative Agent
on the 2006 Term Loan Facility and 2006 Revolving Credit Facility.
JPMorgan Chase Bank, N.A. has agreed to act as Syndication Agent on the
2006 Term Loan Facility.
About Revlon
Revlon is a worldwide cosmetics, skin care, fragrance, and personal care
products company. The Company's vision is to deliver the promise of
beauty through creating and developing the most consumer preferred
brands. Websites featuring current product and promotional information
can be reached at www.revlon.com, www.almay.com
and www.mitchumman.com.
Corporate and investor relations information can be accessed at www.revloninc.com.
The Company's brands, which are sold worldwide, include Revlon(R),
Almay(R), Ultima(R), Charlie(R), Flex(R) and Mitchum(R).
Forward-Looking Statements
Statements in this press release which are not historical facts,
including statements about plans, strategies, beliefs and expectations
of Revlon are forward-looking and subject to the safe harbor provisions
of the Private Securities Litigation Reform Act of 1995. Forward-looking
statements speak only as of the date they are made. Accordingly, except
for the Company’s ongoing obligations under
U.S. federal securities laws, the Company does not intend to update or
otherwise revise the forward-looking information to reflect actual
results of operations, changes in financial condition, changes in
estimates, expectations or assumptions, changes in general economic,
industry or cosmetic category conditions or other circumstances arising
and/or existing since the preparation of this press release or to
reflect the occurrence of any unanticipated events. Such forward-looking
statements include, without limitation, Revlon's expectations and
estimates about future events, including RCPC's plans to refinance its
existing credit agreement, the nature, scope and benefits of the terms
of such refinancing and timing thereof and the use of proceeds. Actual
results may differ materially from such forward-looking statements for a
number of reasons, including those set forth in Revlon's filings with
the Securities and Exchange Commission, including Revlon's Annual Report
on Form 10-K for the fiscal year ended December 31, 2005 and Quarterly
Reports on Form 10-Q and Current Reports on Form 8-K filed with the SEC
during 2006 (which may be viewed on the SEC's website at http://www.sec.gov
or on Revlon, Inc.'s website at http://www.revloninc.com),
as well as difficulties, delays, unexpected costs, the inability of RCPC
to refinance its existing credit agreement, or changes in the nature,
scope and benefits of the terms of such refinancing and/or timing
thereof and/or the use of proceeds. The information available from time
to time on any websites referred to in this press release shall not be
deemed incorporated by reference into this press release.
