Message #14 From:
NewsBot Date: December 20, 2006 06:25:00 AM
REV News Revlon Announces Successful Completion of Credit Agreement Refinancing
NEW YORK--(BUSINESS WIRE)--Revlon, Inc. (NYSE: REV) ("Revlon"), today announced that its
wholly-owned operating subsidiary, Revlon Consumer Products Corporation
("RCPC" and, together with Revlon, Inc., the "Company"), had
successfully consummated the previously-announced refinancing of its
existing bank credit agreement. Among other things, the new credit
facilities will result in significant annual interest savings due to
lower interest margins and provide the Company with greater financial
and other covenant flexibility, as well as extend the maturity dates for
RCPC's bank credit agreement to January 2012.
Commenting on the announcement, Revlon President and CEO David Kennedy
stated, "I am delighted with this demonstration of support by our
lenders. This new credit agreement provides us with additional liquidity
and flexibility as we enter 2007 focused on our core Revlon, Almay and
Mitchum brands, while seeking to continue to improve our cash flow."
As part of this refinancing, RCPC entered into a new 5-year $840 million
term loan facility (the "2006 Term Loan Facility"), replacing the $800
million term loan under RCPC's 2004 bank credit agreement. RCPC also
amended its existing $160 million multi-currency revolving credit
facility under its 2004 bank credit agreement and extended 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").
The Company indicated that the proceeds from the 2006 Credit Facilities
were used to repay in full approximately $800 million of outstanding
indebtedness under the term loan facility of RCPC's 2004 bank credit
agreement, plus accrued interest and a prepayment fee, with the balance
of the proceeds being available for general corporate purposes, after
paying fees and expenses incurred in connection with consummating the
2006 Credit Facilities.
The interest rate on the 2006 Term Loan Facility, which was fully drawn
at the closing, was reduced from LIBOR plus 6.0% to LIBOR plus 4.0%. The
interest rate on the 2006 Revolving Credit Facility, of which
approximately $57 million was drawn at the closing, was reduced from
LIBOR plus 2.5% to LIBOR plus 2.0%. The 2006 Term Loan Facility is
guaranteed and secured by substantially the same collateral package and
guarantees that secured the term loan facility of RCPC's 2004 bank
credit agreement, and the 2006 Revolving Credit Facility continues to be
guaranteed and secured by its existing collateral package and guarantees.
Further details regarding these financing transactions will be made
available by the Company in a Current Report on Form 8-K which the
Company will file with SEC on or about December 21, 2006.
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 the Company, 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, the Company's expectations and
estimates about future events, including (i) the Company's plans to use
the balance of the proceeds of the 2006 Credit Facilities for general
corporate purposes, after paying fees and expenses incurred in
connection with consummating the 2006 Credit Facilities, and (ii) the
Company's belief that the new credit agreement provides it with
additional liquidity and flexibility as it enters 2007 focused on its
core Revlon, Almay and Mitchum brands, while seeking to continue to
improve its cash flow. Actual results may differ materially from such
forward-looking statements for a number of reasons, including those set
forth in the Company's filings with the Securities and Exchange
Commission, including the Company'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 and 2007
(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 associated with, or
the Company's inability, in whole or in part to (i) use the balance of
the proceeds of the 2006 Credit Facilities for general corporate
purposes and/or (ii) achieve its future cash flow and liquidity
objectives, such as due to less than anticipated results from the
Company's brands, less than expected effectiveness of marketing
programs, lower than anticipated revenues or more than anticipated
returns, less than anticipated shipments, higher than expected expenses,
less than anticipated retail customer or consumer acceptance of the
Company's new products, including under the Revlon brand, decreased
sales of the Company's existing products as a result of new products,
actions by the Company's retail customers impacting the Company's
financial performance, including in response to decreased consumer
spending in response to weak economic conditions or weakness in the
category or retailer inventory management, changes in consumer
preferences, such as reduced consumer demand for the Company's products,
changes in consumer purchasing habits, including with respect to
shopping channels, changes in the competitive environment and actions by
the Company's competitors, including business combinations,
technological breakthroughs, new products offerings, promotional
spending and marketing and promotional successes. Factors other than
those listed above could also cause the Company's results to differ
materially from expected results. 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.
