Revlon announced that it has successfully completed the financial restructuring process and has emerged from Chapter 11 positioned for future success and growth. The newly reorganized company is named "Revlon Group Holdings LLC.”
With approximately $236 million of liquidity, funded through an equity rights offering, a new money senior secured credit facility, and new asset-based loans, Revlon is emerging from Chapter 11 as a private company on strong financial footing. The Company has significantly simplified its capital structure by eliminating more than $2.7 billion in debt from its balance sheet, leaving it with approximately $1.5 billion of debt outstanding. The majority of the Company’s reorganized equity is now owned by its former lenders, including affiliates of Glendon Capital Management LP, King Street Capital Management, L.P., Angelo, Gordon & Co., L.P., Antara Capital LP, Nut Tree Capital Management, LP, Oak Hill Advisors, L.P., and Cyrus Capital Partners, LP, among others.
Debra Perelman, Revlon’s President and Chief Executive Officer, said: “Today marks an important moment in Revlon’s history and evolution. Less than a year after beginning the financial restructuring process, I’m proud to say that we are emerging today as a stronger company that is well positioned for long-term growth. With a simplified capital structure, significantly reduced debt, and a new, highly experienced and committed Board of Directors, we look forward to unlocking the full potential of our globally recognized brands and continuing to offer our customers the iconic products they have loved for decades.”
As previously announced, in connection with its emergence from bankruptcy, Revlon has formed a new Board of Directors for the reorganized company comprised of senior executives with deep knowledge of the global consumer, retail, and beauty industries, including Executive Chair Elizabeth (Liz) A. Smith, former Executive Chairman and Chief Executive Officer of Bloomin’ Brands, Inc. and former Chair of the Federal Reserve of Atlanta; Martin Brok, former Global President and Chief Executive Officer of Sephora; Timothy McLevish, former Chief Financial Officer at Walgreens Boots Alliance, Inc.; Hans Melotte, former President of Starbucks’ Global Channel Development; and Paul Pressler, Chairman of the Board of Directors of eBay, Inc.
Liz Smith said: “I am confident that today’s milestone is only the beginning of Revlon’s bright future. While honoring the Company’s legacy, I look forward to working alongside the management team and my director colleagues to usher in a new era, execute against the significant opportunities ahead, and deliver enduring value to all Revlon’s stakeholders.”
Noah Charney, Managing Director at King Street Capital Management, L.P., said: “On behalf of Revlon’s new shareholder group, we are proud to serve as stewards of this storied American business and support the Company as it embarks on its path to sustainable, profitable growth.”
PJT Partners acted as financial advisor to Revlon and Alvarez & Marsal acted as restructuring advisor. Paul, Weiss, Rifkind, Wharton & Garrison LLP acted as legal advisor to the Company.
Centerview Partners LLC acted as financial advisor and Davis Polk & Wardwell LLP acted as legal advisor to the Company’s lenders.