Deals
Revlon Creditors Brace for Perelman Pulling a J.Crew-Style Deal
- Debt terms could allow cosmetics company to transfer assets
- Bondholders ponder scenario where they lose claim on brands
Photographer: Daniel Acker/Bloomberg
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Revlon Inc.’s lenders are wondering whether Ron Perelman’s cosmetics company is headed for a J. Crew-style debt makeover.
There’s reason for concern, with profits faltering and some of Revlon’s $3 billion of junk-rated debt trading at deeply distressed levels. What’s more, the stock has lost about half its value since March 2015, potentially putting pressure on Revlon to aid shareholders -- with Perelman’s investment firm MacAndrews & Forbes Holdings controlling the biggest stake.