Revlon Sets Terms for Rights Offering

2006-12-18 | 11:33

Cosmetics maker Revlon Inc. offered the terms for its $100 million rights offering. Revlon will distribute on transferable subscription right for each share of Class A and Class B stock head by shareholders as of Dec. 11. Each subscription enables rights holders to buy 0.2308 of a share of Class A common stock. Fractional shares will not be issued. The subscription price for each share is $1.05 per share. Each rights holder that exercises the basic subscription privilege in full can also subscribe for additional shares at the same subscription price of $1.05 per share, to the extent other rights holders do not exercise they're rights in full. About $50 million of proceeds from the rights offering are expected to be used to redeem $50 million from the principal amount of the 8 5/8 percent senior subordinated notes due 2008 of Revlon subsidiary Revlon Consumer Products Corp. The rest of the proceeds are expected to be used to repay debt under Revlon Consumer Products Corp.'s revolving credit facility. Revlon shares shed 1 cent to $1.35 during morning trading on the New York Stock Exchange.