The bank meeting set for last Monday to launch syndication of a refinancing for Revlon was pushed back, investors said, although no definitive reason was given. One banker said it was due to scheduling conflicts, but would not elaborate. One investor said another banker involved in the deal said it would go this week, but the first banker said no date has been set.
Citigroup and JPMorgan are leading the credit, which consists of an $850 million term loan and a $160 million asset-based revolver. The banks are looking to take pricing down from LIBOR plus 6% to LIBOR plus 3%. There is currently 103 call protection on the existing deal, but that steps down to 101 in June. A Revlon spokesman referred all questions to the company's latest Securities and Exchange Commission filing.
Although the 300 basis point cut may look agressive, one portfolio manager said the company has changed significantly in the past two years. "When they did this...LIBOR [plus] 600 on the loan...they were a hurting puppy," he said. According to a Revlon financial report, gross profit for 2005 was $824.2 million, compared with $615.7 million for 2002. On news of the bank meeting move, the company's term loan moved down half a point to 101.