THE WHAT? Revlon is said to be close to a bondholder accord, which will help the beauty giant avoid bankruptcy, news which has caused company shares to jump 15 percent this week, according to a report by Bloomberg.
THE DETAILS The bondholder accord would allow Revlon to eliminate a key piece of debt and avoid a bankruptcy filing, with bondholders said to have agreed to tender for exchange $236.5 million, or 69%, of a $343 million bond issue that is due to be paid next week.
The percentage is short of the company’s original goal, however, Revlon is said to be assuming more holders will get on board and is considering closing the exchange.
THE WHY? The development is the latest plan by owner Ronald Perelman to give the company breathing space to focus on a business turnaround and ease its debt load.
Revlon needs to have made a deal by 16th November in order to avoid a repayment of $1 billion of secured debt.
The decision is not said to be set in stone, with Revlon still potentially filing for bankruptcy.