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Revlon Agrees to $150 Million in New Funding

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By: TOM BRANNA

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Revlon Inc., New York, NY, said its board approved a proposal from a firm owned by Revlon chairman Ronald Perelman to provide it with $150 million in cash to help bolster its finances. The firm, MacAndrews & Forbes, will provide Revlon with the cash through the combination of an equity rights offering and debt financing. The money will be used to help the cosmetics company fund a strategic plan as it struggles with a heavy debt load and tough competition.

In addition to the $150 million investment, MacAndrews & Forbes has agreed to continue its commitment to provide Revlon with additional liquidity of up to $40 million through Dec. 31, 2003, Revlon said in a statement. MacAndrews & Forbes has also increased the commitment to up to $65 million through Dec. 31, 2004 through a senior unsecured line of credit at an interest rate 25 basis points lower than the rate under Revlon’s current bank credit agreement.

Revlon said it has obtained the necessary amendment to its credit agreement to complete the deal.

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