THE WHAT? Revlon has this week announced an exchange offer for $345 million in debt in a bid to buy some time to fend off the strain of the COVID-19 pandemic.
THE DETAILS The exchange offer is the second for the beauty company, with a July offer expiring in September with only 5.1 percent of bondholders agreeing.
Set to expire on 27th October, according to a regulatory filing the new deal gives two options; cash or a mixed cash consideration. While totals are said to be well below face value, should the deal not be accepted Revlon will be left in a difficult position, with other debt due by 16th November.
In order to be accepted, the new offer needs at least 95 percent of the principal to sign up.
THE WHY? Revlon is said to be looking to “protect our liquidity, managing through the Covid-19 pandemic and ensuring that we have debt maturity runway to allow us to continue executing our turnaround strategy,” according to a statement given to Bloomberg.
It continued, “This new exchange offer incorporates feedback from discussions with many of our key constituents and provides our noteholders with more attractive terms compared to our prior offer, while still supporting the goal of allowing Revlon to continue investing in our business and in our strategic growth priorities.”