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Revlon, Inc. (REV)

NYSE - NYSE Delayed Price. Currency in USD
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11.56-0.45 (-3.75%)
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  • P
    Paul
    Wow no activity on this board
    Wonder why it trades so few shares
    Now BK behind and economy improving due to vaccine coming this seems to be to beat down to much??
  • F
    FlashFreeze
    Congratulations to bondholders who held back. :)

    NEW YORK--(BUSINESS WIRE)--Revlon, Inc. (NYSE: REV) announced today the final results and expiration of its previously-announced exchange offer and consent solicitation (the “Exchange Offer and Consent Solicitation”) by Revlon Consumer Products Corporation, its direct wholly-owned operating subsidiary (the “Company”) that was made pursuant to the amended and restated offering memorandum and consent solicitation statement (the “Offering Memorandum”), dated October 23, 2020. The Company had offered to exchange any and all its 5.75% Senior Notes due 2021 (the “Notes”) issued pursuant to that certain indenture, dated February 8, 2013 (as amended, supplemented, or modified), by and among the Company, the guarantor parties thereto and U.S. Bank, National Association, as trustee (the “Indenture”), for (i) the cash consideration or (ii) the Mixed Consideration, in each case as described in the Amended and Restated Offering Memorandum.

    As of 11:59 p.m., New York City time, on Tuesday, November 10, 2020 (the “ Expiration Time”), approximately $236 million aggregate principal amount of the Notes (or approximately 68.8% of the aggregate outstanding principal amount of such series of Notes) had been validly tendered into the Exchange Offer and Consent Solicitation and not withdrawn.

    The Company has determined that all conditions precedent to the consummation of the Exchange Offer and Consent Solicitation have been satisfied, and acceptance and settlement is expected to occur on Friday, November 13, 2020 (the “Settlement Date”), assuming that all conditions precedent continue to be satisfied as of that time. On the Settlement Date, the Company will enter into a supplemental indenture to the Indenture to adopt the Proposed Amendments (as defined in the Offering Memorandum) which would eliminate substantially all restrictive covenants and certain events of default provisions. As a result, the Company does not expect that any bankruptcy or insolvency proceeding will be necessary.

    Once the Settlement Date occurs, the Company expects to give irrevocable notice under the Indenture that it will optionally redeem, on December 14, 2020, the remaining approximately $106.8 million aggregate principal amount of Notes not tendered into the Exchange Offer and Consent Solicitation at a price equal to 100% of their aggregate principal amount, together with interest accrued on such Notes to, but excluding, the date of redemption, in accordance with the terms of the Indenture. As a result of such notice and the irrevocable deposit of funds with the Indenture trustee sufficient to effect such redemption, the Notes and the Indenture will be considered discharged in full effective as of November 13, 2020.

    Debra Perelman, Revlon's President and Chief Executive Officer, stated: “We are pleased by the favorable response to the Exchange Offer, and we look forward to closing it on Friday. 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.”
    Bullish
  • F
    FlashFreeze
    From the SEC filing on October 23, it seems even with the missing $90m bondholders, the exchange offer is going to pass because REV has ample liquidity even if these bondholders are a no show but I expect another extension tomorrow just to play safe.

    Modifications to Conditions Precedent

    Products Corporation has eliminated the condition precedent to the completion of the Exchange Offer that a minimum of 95% of all aggregate principal amount of Notes outstanding be tendered in the Exchange Offer.

    Products Corporation has included a new condition to the completion of the Exchange Offer that Products Corporation’s As-Adjusted Liquidity (as defined below) be not less than $175,000,000 plus the aggregate principal amount of Notes (together with accrued and unpaid interest thereon) outstanding after completion of the Exchange Offer.

    The Company’s “As-Adjusted Liquidity” is defined as: (1) unrestricted cash (including cash generated from operations) after completion of the Exchange Offer, plus (2) “Excess Availability” under the Amended Credit Agreement after completion of the Exchange Offer, less (3) accrued and unpaid transaction-related professional fees.

    As of October 16, 2020, the Company’s As-Adjusted Liquidity was a total of approximately $308 million, consisting of: (1) $267 million of unrestricted cash (not reflecting any cash generated from operations or any other items that might arise after such date), plus (2) $57 million of “Excess Availability” under the Amended Credit Agreement (not giving effect to an $85 million availability block currently in effect that will terminate as of the date of completion of the Exchange Offer and not reflecting any reserves or other adjustments to the Borrowing Base thereunder that may be imposed by the lenders prior to the settlement date of the Exchange Offer and Consent Solicitation), less (3) approximately $16 million of accrued and unpaid transaction-related professional fees.

    All other conditions precedent remain unchanged.
    Bullish
  • S
    SLO Doug
    Revlon retain bond due 2/15/21 are selling now at $54.3. I think the exchange will be accepted by the institutional holders who will be paid about $700 per bond and the remaining unexchanged bonds will pay full at maturity in February of next year.
  • F
    FlashFreeze
    It's looking like Revlon is trying to do away with the default provisions. Is that what news releases talk about when they said November 16 deadline?

    Revlon Announces Amendment and Extension of Exchange Offer and Concurrent Consent Solicitation
    Oct 23, 2020
    NEW YORK--(BUSINESS WIRE)

    In conjunction with the Exchange Offer, the Company is soliciting consents (the “Consent Solicitation”) to effectuate proposed amendments, which will eliminate substantially all of the restrictive covenants and certain events of default provisions from the Indenture. Holders who tender their Notes in the Exchange Offer must also, and will be deemed to, deliver their consents with respect to such Notes pursuant to the Consent Solicitation.

    As amended, the Exchange Offer and Consent Solicitation is no longer subject to the condition precedent that a minimum of 95% of all aggregate principal amount of Notes outstanding be tendered in the Exchange Offer. The Exchange Offer and Consent Solicitation is now subject to a new condition precedent that the Company’s As-Adjusted Liquidity (as defined below) is not less than $175,000,000 plus the aggregate principal amount of Notes (together with accrued and unpaid interest thereon) outstanding after completion of the Exchange Offer and Consent Solicitation. All other conditions precedent remain unchanged, as more fully set forth in the Amended and Restated Offering Memorandum.
    Bullish
  • S
    SLO Doug
    Bond prices edging up. Stock prices raising substantially. Exchange offer extended with a price of $325 for retail holders and $750 for institutional holder. And a NEW glossy 4 color two page printed and FedEx delivered flyer announcing the deadline extension. Jeeezzeee. Spend the dollars Perlman. Spend the dollars. Don't protect the current and existing stock & bond holders. A god forbid you sweeten the offer to existing retail bond holder.

    Forget the success of the exchange unless you have complete control of the institutionally bond holders.
  • F
    FlashFreeze
    Only 3.57M short interest as at 11/13/20 (my bad expecting a lot more, smart shorts covered, good for them)

    Then from then on, between 13-21% of the trading volume was short.

    Days to cover between 6 to 10 days?
    Bullish
  • R
    Ray
    There were no shockers in the ER and the after hours activity is proving this. Color cosmetics and fragrance are a challenge for the entire industry. I remain long for the following reasons:
    1. Perelman remains one of the greatest business minds
    2. He owns 87% of the shares
    3. The parts are greater than the whole and actively looking to offload brands that make sense to further lower debt
    4. Company now has no debt maturities until 2024 so it has time to execute plans
    5. Has shown a remarkable ability to pivot during the downturn and drastically adjusted operating costs
    6. Their mass market portfolio and price points play well in challenging economic times
    Bullish
  • m
    mike
    COTY is the best choice to buy.
    Bullish
  • F
    FlashFreeze
    On the 24th, expect short interest data as at the 13th to be over 100% of the 6m float.

    Retail Investors hold a maximum of 1m shares I suspect.

    From simplywallstreet:

    General Public 0.7% -- why short REV now? It's a little too late for that. There are many other better short plays out there where management doesn't own a sizeable portion of the common shares and don't care much about the company going bankrupt.
    349,075 shares

    Individual Insiders 9.0%
    4,820,935 shares

    Institutions 12.2%
    6,483,324 shares

    VC/PE Firms 78.1% - Perelman and MacAndrew's stakes.
    41,676,969 shares
    Bullish
  • J
    Javon
    So my dad told me that the stock market is a legal form of gambling that he could support me doing, but told me not to put any money in unless I have a minimum of 5-10k. We'll I put my $1900 into this stock once it caught wind last night at $9.79.

    Well dad, now I have $3.3k in my robin hood account and rising. look who's laughing now
  • m
    mike
    Buy COTY guys. Still extremely undervalued with huge potential upside.
    Bullish
  • S
    Steven
    Mmm..bankruptcy off the table..earnings not so bad...vaccine rolling out...smells like a buy

    Women amd some men need makeup
  • R
    Ray
    IMO Entry point is right now. I believe that the call will be a positive one and only up from there. Hair, nail and skin were stay at home categories- Rev has them all. Additionally, I think Elizabeth Arden will show greater profit contribution.

    Makeup category is down 18%. Rev needs to show that they are on par with industry average.

    Indications that they will be in a much better financial position after the bond swap.
    Bullish
  • I
    Ishana
    When is the earnings ? Today?
  • F
    FlashFreeze
    I guess the day traders have left in droves and the few that were caught off- guard by the drop during after-hours yesterday and pre-market today, just wanted to protect their profits and move on.

    I will most likely be holding until Q4 (2020 full-year) conference call in February 2021 or until my target price of around $15 is achieved, whichever comes first.
  • R
    Ray
    Just listened to the earnings call. I’m very happy with the progress, especially the growth in E Commerce - And furthermore the Current quarter is surpassing expectations.

    Also more bullish than ever with the EA acquisition and it’s contribution- it is a leading global skincare brand with leading franchises. The short term financial angst its debt created is ensuring the long term success of the company.

    My prediction is that we hear about the offloading of brands in the near future along with retail traffic picking back up. The SP will be back to Pre COVID soon.
    Bullish
  • F
    FlashFreeze
    I am expecting an even bigger percentage of shares shorted today. Just imagine when on tomorrow's conference call, management talks about the exchange offer being successful and that Nov 16 springing maturity for a more senior secured note is extinguished..

    Market Date Short Volume Total Volume Short Volume Ratio
    2020-11-10 5,829,646 18,178,610 32.07
    2020-11-09 85,626 361,600 23.68
    2020-11-06 35,371 147,740 23.94
    2020-11-05 77,832 234,031 33.26
    2020-11-04 70,493 443,012 15.91
    2020-11-03 77,993 421,493 18.50
    2020-11-02 96,280 302,894 31.79
    2020-10-30 154,511 599,600 25.77
    2020-10-29 62,565 228,500 27.38
    2020-10-28 38,408 167,700 22.90
    Bullish
  • m
    mike
    Buy COTY guys, still extremely undervalued. The company is profitable. You can double current price the next few months.
    Bullish