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Revlon Moves to Shrink Debt

Move will reduce debt by $170 million

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By: TOM BRANNA

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Revlon, Inc. has announced plans to reduce its debt by $170 million by repaying a $170 million MacAndrews & Forbes senior subordinated term loan, which matures August 1, 2009. The two-part plan will use part of the proceeds from the sale of its Bozzano business in Brazil to repay $63 million of the loan; the second part, which will be launched as early as the fourth quarter of 2008, involves a $107 million equity rights offering that would allow stockholders to purchase additional shares of Revlon Class A common stock. The loan reportedly carries an interest cost of almost $19 million.

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