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Revlon Asks for Loan Assistance

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By: TOM BRANNA

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Revlon was forced to extend the deadline on $80.5 million worth of notes at a higher interest rate last week. The company is continuing to seek amendments or waivers from lenders to keep it from falling out of compliance with current credit agreements. This is in addition to several loans including a $100 million loan from owner Ronald Perlman’s MacAndrews & Forbes Holdings Inc. this year.

Revlon Holdings LLC filed a prospectus with the Securities and Exchange Commission to exchange senior secured notes due in 2004, issued at a 12% interest rate, for new notes at a 13% rate maturing in 2007. Due to its cash shortage, Revlon said it will not be able to meet requirements of its covenants including a minimum of $20 million of liquidity a all times.

If lenders do not agree with the new terms, Revlon would consider several actions: refinancing the existing credit agreement, selling off assets or operations, seeking additional contributions from MacAndrews or issuing new Revlon stock.

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