THE WHAT? Revlon is looking to delay repayments due to bondholders next year as it looks to recover from the blow to the business felt from COVID-19, according to a report by Bloomberg.
THE DETAILS According to a regulatory filing, the cosmetics giant is looking to exchange the 5.75% bonds due in 2021 for new notes with the same coupon maturing in 2024.
The final deadline for the exchange is 21st August, with the offer being dependent on the involvement of 95 percent of bondholders and agreement from the company’s term loan lenders.
Revlon is said to be requesting bondholders take a cut of 20 to 25 cents on the dollar, which is from par value of 100 cents.
THE WHY? The bond exchange would allow Revlon breathing space to reorganize its debt as it looks to recover from the financial hit felt by the GVC.
The development follows the company’s successful appeal to refinance $1.8 billion of debt.