The cosmetics maker has successfully satisfied creditors by paying off almost 70% of its outstanding debt, but sales continue to be impacted by the Covid-19 pandemic
Revlon has avoided entering Chapter 11 bankruptcy after successfully tendering US$236m of bondholders’ notes.
The group leant on bondholders to trade in their 5.75% senior notes for cash in order to complete a $343m bond swap by mid-November.
The company offered holders either $325 cash back for every $1,000 note tendered.
By submitting 68.8% of the aggregated outstanding principal amount Revlon has successfully satisfied its creditors – for now.
The cosmetics maker now has until 14 December to tender the outstanding $106.8m, which it will garner from more bondholders’ notes at a price equal to 100% of their aggregate principal amount.
“We are pleased by the favourable response to the Exchange Offer, and we look forward to closing it on Friday,” said Revlon’s President and CEO Debra Perelman.
“This represents an important step towards strengthening our capital structure and better positions us to focus on our future growth.
“While we still have challenges to face, namely the ongoing impact of the Covid-19 pandemic, we believe that we have the right strategy in place and will continue to execute against it.”
However, despite staying afloat with lenders, the cosmetics giant reported a nosedive in its net sales for Q3.
Revlon reported net sales of $477m, a 20% downturn from $596m during the same period in 2019.
However, net losses in 2020 were comparable with those in the previous year, with $4.5m net losses in 2020 versus $44.7 in 2019.
The group said the coronavirus pandemic and subsequent shutdowns contributed to the group’s losses.