REVLON UNIT, BANKS REWORK LOAN

NEW YORK — Revlon’s Consumer Product Corp. unit has amended a bank loan to free up cash and reduce the risk of it defaulting on its debt.
In return for about $2.1 million more in annual interest payments and a $1.6 million fee, Revlon has been allowed to keep proceeds from the sale of two plants. The fee corresponds to 0.375 percent of the $426.1 million outstanding under its bank loan, for which J.P. Morgan Chase & Co. is the lead lender.
Revlon also agreed to post earnings before interest, taxes, depreciation and amortization of at least $25 million this quarter, which ends in March; $60 million by July and $200 million by the close of its fiscal year at the end of December.
Some details of the amended agreement were disclosed in a Form 8-K filed Tuesday with the Securities and Exchange Commission.
Revlon’s parent, Rev Holdings, also filed with the SEC to exchange its $140 million in discount notes, maturing March 15, for $120.9 million of new 12 percent senior secured notes to mature in 2004. In cutting its debt ratings on the bonds, Standard & Poor’s said earlier this month that such an exchange was tantamount to default.
In a default, bondholders would receive proportional shares of Revlon stock, which closed at $5.90 in New York Stock Exchange trading Tuesday, just over half of its 52-week high.

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