Revlon Gets More Cash from Perelman

Revlon Inc. today said financier Ronald Perelman’s MacAndrews & Forbes Holdings Inc. has agreed to provide it with up to $125 million to continue operating. The cash infusion comes as the maker of Revlon and Almay cosmetics has nearly exhausted several lines of credit, including funds MacAndrews & Forbes lent it earlier this year.

From the end of 2002 until the end of the third quarter, Revlon’s long-term debt grew to $1.86 billion from $1.75 billion.

The funding will be in the form of unsecured loans made to Revlon Consumer Products Corp., a unit of Revlon, Inc. A total of $25 million is available immediately and the rest can be accessed in 2004, said Revlon, which is more than 80 percent controlled by Perelman.

The $100 million term loan for 2004 is subject to approval by the company’s bank lenders, which the company said it expects to receive in connection with a waiver of the company’s credit agreement. Revlon expects to obtain the waiver before Jan. 31.

Revlon’s cash crunch has been exacerbated by aggressive competition from much larger rivals Procter & Gamble Co., which makes Cover Girl and Max Factor cosmetics, and L’Oreal.