Revlon Group Holdings provided additional details around the benefits of its recently upsized and enhanced credit facility.
 
As previously announced on September 30th, Revlon Intermediate Holdings III LLC  and certain of its subsidiaries entered into a five-year senior secured asset-based credit agreement with MUFG Bank, as administrative agent, and the lenders party thereto. The Credit Agreement provides Revlon with a credit facility in an aggregate principal amount of $350 million and replaces Revlon’s revolving credit agreement entered into with MidCap Financial Trust and other lenders on May 2, 2023, which was terminated on September 30, 2024.
 
The new Credit Agreement offers Revlon enhanced liquidity, improved terms and greater flexibility, including the following key elements:
 
Liquidity:

• Incremental liquidity of ~$100 million as follows:
  
  • $43 million received in Q3 from US/UK/Canada assets
  • $56 million incremental from international assets (in Q4)

• New $100 million accordion
• New $50 million letter of credit sublimit 

Pricing:

• Improves from Secured Overnight Financing Rate (“SOFR”) of + 450 bps (1.75% floor) to SOFR (or the applicable benchmark for foreign currency borrowings) of + 275bps (subject to a pricing grid)
• Floor improves from 1.75% to 0%

Increased Flexibility in Terms:

• Five-year maturity (vs. three years under the previous agreement)
• Improved springing maintenance covenant
• No minimum interest requirement
• Ability to borrow against certain foreign assets which will become collateral under the existing Term Loan Agreement

Ted McCormick, Revlon’s Chief Financial Officer, commented: “This agreement significantly improves Revlon’s financial position, providing us with additional liquidity and reduced cost of capital. Returning to the bank debt market with such improved terms marks a true milestone for the Company. We now have greater flexibility to execute on our strategic priorities and enhance value for all our stakeholders.”