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Revlon Says Bond Investors May Not Get Paid if Exchange Fails

  • CEO Perelman sends letter asking holders to participate
  • Cosmetics giant needs a minimum of 95% of noteholders to agree
Revlon Inc. Products Ahead Of Earnings Figures
Photographer: Daniel Acker/Bloomberg

Revlon Inc. issued a stark warning to bond investors, saying their holdings may be jeopardy if they don’t take part in the company’s proposed debt exchange.

The cosmetics company is seeking to buy back $345 million of 5.75% bonds due next year at a steep discount to face value. It’s struggled to convince investors to participate in the deal, and extended an early participation deadline after receiving just 11% of the bonds.