Revlon Gets $1.52 Billion Debt Commitment for Colomer PurchaseKrista Giovacco
Revlon Inc., the cosmetics maker controlled by financier Ronald Perelman, obtained $1.52 billion of loans to support its $660 million acquisition of beauty-care company The Colomer Group.
Citigroup Inc. is arranging the financing, New York-based Revlon said in a statement distributed by Business Wire today. The transaction includes a $1.375 billion term loan and a $140 million asset-based, multicurrency revolving line of credit, according to a regulatory filing.
Revlon will use proceeds from the new debt to fund the buyout of The Colomer Group from CVC Capital Partners and refinance a $675 million term loan under Revlon’s 2011 credit pact, according to the company. That piece, due in November 2017, pays interest at 3 percentage points more than the London interbank offered rate, with a 1 percent minimum on the lending benchmark, according to data compiled by Bloomberg.
Elise Garofalo, senior vice president, treasurer and investor relations spokeswoman at Revlon, didn’t immediately return a phone call seeking comment.
Revlon’s $500 million of 5.75 percent senior unsecured notes rose 0.13 cent today to 101.3 cents on the dollar to yield 5.5 percent, according to prices compiled by Bloomberg.
In a revolving line of credit, money may be borrowed again once it’s repaid; in a term loan it can’t. Asset-based debt is secured by a company’s inventory and receivables.