NEW YORK — Revlon Inc. said Thursday that its lenders agreed to amend the company’s credit agreement, which extends a waiver to its financial covenants by one year.
This story first appeared in the January 30, 2004 issue of WWD. Subscribe Today.
The amendment also includes an approval of Revlon’s previously announced commitment from MacAndrews & Forbes for unsecured loans of $100 million and $25 million, which are earmarked for its consumer products subsidiary.
The one-year extension of the amendment is on a waiver that was originally granted last year. The amendment allows certain financial covenants, which are financial performance criteria the company must maintain in order to continue tapping into its credit facilities, to be waived through Jan. 31, 2005.
“In addition, the 2004 amendment also continues the $20 million minimum liquidity covenant established in connection with the company’s 2003 credit agreement amendment,” the company said.
Additionally, the amendment extends the maturity of a $65 million line of credit from MacAndrews & Forbes to the company’s wholly owned subsidiary, Revlon Consumer Products Corp., from Dec. 1, 2004 to June 30, 2005, while also increasing the interest rate for “loans under the credit agreement by 0.25 percentage points.”
Revlon president and chief executive officer Jack Stahl said he has “every confidence that the actions we are taking to strengthen the business are moving us toward our objective of achieving long-term profitable growth.”