Revlon plans to reduce debt by $170M by repaying term loan

BOSTON, Sep 03, 2008 (Thomson Financial via COMTEX) -- REV | Quote | Chart | News | PowerRating -- Revlon Inc. Wednesday said it plans to repay the $170 million MacAndrews & Forbes senior subordinated term loan, which matures on Aug. 1, 2009, in an effort to reduce its debt.

The New York-based cosmetics company said it will use $63 million of the net proceeds from the sale of its Bozzano business in Brazil to repay a portion of the $170 million M&F term loan. The remaining roughly $30 million of net cash proceeds from the sale of business will be used for general corporate purposes, Revlon said.

Additionally, the company said it intends to launch a $107 million equity rights offering, as early as in the fourth quarter, that would allow stockholders to purchase additional shares of Revlon Class A common stock. Revlon plans to use the net proceeds of such equity issuance to fully repay the remaining balance of the M&F term loan.

Separately, Revlon said it intends to effect its previously announced 1-for-10 reverse stock split of its Class A and Class B common stock on Sept. 15 and open for trading on the New York Stock Exchange on a post-split basis on Sept. 16.

Shares closed Tuesday at $1.45. Casey Logan cl/cm

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