Revlon Consumer Products Corp.'s new $800 million "B" loan was trading actively last week breaking at 102 1/4 and then rising up to the 103 5/8-3/4 level. "It should trade well, the market liked the deal," one trader said. Toward the end of the week the paper was quoted slightly lower at 103 1/8-1/2.
The refinancing deal, led by Citigroup, also includes a $160 million revolver. The "B" loan was upsized $50 million during syndication from $750 million. Pricing on the loan also came in at LIBOR plus 6%, which was the tight end of originally floated terms. In addition, the call protection was eased from 105, 103, 102, 101, over four years respectively, to 105, 103, 101, over three years. One banker said hedge funds were the main buyers of the loan, but some par funds also participated.
The loan is designed to increase Revlon's near-term liquidity position, replacing credit facilities that were likely to be in covenant violation as early as January 2005, noted Moody's Investors Service. Revlon oficials did not return calls.