|Bid||4.1000 x 800|
|Ask||4.1600 x 800|
|Day's Range||3.9701 - 4.9900|
|52 Week Range||3.9700 - 25.7000|
|Beta (5Y Monthly)||0.90|
|PE Ratio (TTM)||N/A|
|Earnings Date||Nov 06, 2020 - Nov 10, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||7.00|
(Bloomberg) -- Billionaires Ronald Perelman and Carl Icahn are facing off as Revlon Inc. seeks to restructure its debt load and avert bankruptcy in the coming days.Icahn, who is among the largest holders of $343 million of Revlon notes due next year, has been holding out on a proposed debt exchange that would loosen the company’s debt load and allow it to stave off a potential bankruptcy filing, according to people with knowledge of the matter. Icahn hasn’t participated in the exchange -- in which holders would be paid a significant discount to face value -- because he doesn’t believe it adequately compensates holders, the people said.A representatives for Icahn, Revlon and Perelman’s holding company MacAndrews & Forbes declined to comment. The Wall Street Journal first reported elements of the fight.Chief among Icahn’s concerns is that if Revlon pays down the portion of bonds that aren’t exchanged, the company would be using a large amount of cash to fully pay off a group of mostly retail holders the company may not be able to locate while participating investors take a haircut, the people said.Past ClashThis isn’t the first time that Perelman, 77, and Icahn, 84, have been at odds. The billionaires clashed in the bankruptcy restructuring of Marvel Entertainment Group Inc. in the late 1990s, when Icahn led a group of creditors that wrested control of the comic book publisher from Perelman.If Icahn continues to hold out, it could complicate Revlon’s exchange process, the people said. The company is continuing to negotiate with all creditors ahead of the deal’s Nov. 10 final deadline, they added.Revlon is seeking to complete the exchange to avoid triggering a $1 billion loan repayment in mid-November if any of the bonds are left outstanding. The company doesn’t have the cash to pay down the debt if investors balk at the exchange, and is considering options including a Chapter 11 filing to stay in business if the swap fails, according to debt documents.Institutional SupportHolders of around 27% of the bonds had signed onto the exchange as of Thursday, the company said in a statement. Revlon has been extending deadlines and tweaking terms of the deal in an effort to get more investors to join.A group of institutional investors support Revlon’s restructuring efforts, but the company has had difficulty completing the exchange because a chunk of the bonds are held by mom-and-pop buyers who are less familiar with the swap process, Bloomberg previously reported. Revlon created a website asking investors to turn in their holdings and included stark warnings about the firm’s future.Bondholders who participate in the exchange can receive cash or a combination of cash and new loans. The swap would value their holdings for as little as 27.5 cents on the dollar. The debt last changed hands at 27.25 cents, according to Trace.Perelman, who owns 87% of the cosmetics company, has been shedding assets in recent months. His daughter, Debra Perelman, is Revlon’s chief executive.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Revlon, Inc. (NYSE: REV) announced today that Revlon Consumer Products Corporation, its direct wholly-owned operating subsidiary (the "Company"), has reached an agreement with an ad hoc group of holders (the "Tendering Holders") of the Company’s 5.75% Senior Notes due 2021 (the "Notes") to participate in the Company’s pending Exchange Offer and Consent Solicitation (the "Exchange Offer") by tendering their Notes and providing the related consents. The Tendering Holders are represented by Stroock & Stroock & Lavan LLP and Greenhill & Co. LLC. This announcement is being made in connection with the Company’s previously-announced and pending offer to exchange any and all of the Company’s outstanding $342,785,000 aggregate principal amount of Notes for (i) cash consideration or (ii) Mixed Consideration, in each case as described in the amended and restated Offering Memorandum and Consent Solicitation Statement (the "Offering Memorandum"), dated October 23, 2020.
(Bloomberg) -- Revlon Inc. is telling investors that if it can’t restructure its debt in the coming days, it could file for bankruptcy. But some bondholders may be banking on the makeup company’s majority owner, Ron Perelman, bailing it out.The makeup company has two weeks to complete a $343 million bond swap or otherwise eliminate the notes. If it fails, it would trigger a $1 billion loan repayment in mid-November. Revlon lacks the liquidity to pay down the debt if investors balk at the exchange, forcing it to weigh options including a Chapter 11 filing to stay in business, according to company debt documents.So far, Revlon has had little luck convincing a majority of investors to sign onto a deal. It’s been extending deadlines and tweaking terms of the exchange. Its most recent effort garnered participation from holders of less than 14% of the bonds by an Oct. 23 early deadline that’s since been extended.“If bondholders don’t exchange, they’re betting Ronald Perelman or another stakeholder would put capital into this company, otherwise it files,” Bloomberg Intelligence analyst Phil Brendel said in an interview.Unwinding an EmpireBut the billionaire, who owns 87% of the company, has been shedding assets in recent months. He’s put his Manhattan mansion, prizes from his art collection and his superyacht on the market -- not exactly signs that he’s ready to invest more money in a struggling firm. Last month, Perelman, 77, said he planned to “clean house, simplify and give others the chance to enjoy some of the beautiful things that I’ve acquired.”Revlon’s Chief Executive Officer Debra Perelman is Ron’s daughter, and the family dynamics may complicate the calculus around putting more money in the firm, Brendel said.“Perelman’s recent sales are drawing attention due to their sudden and voluminous nature, appearing almost forced” Brendel said. “But Revlon isn’t like Perelman’s other portfolio companies with his daughter as CEO. That’s a factor to consider in an otherwise tough decision.”Revlon said in a statement to Bloomberg that its “focus remains on completing the amended exchange offer, which incorporates feedback from ongoing discussions with many of our noteholders and other key constituents. As a company, we remain committed to taking the right actions to protect our liquidity, managing through the COVID-19 pandemic and ensuring that we have debt maturity runway to allow us to continue executing our turnaround strategy.”A representative for Perelman’s holding company MacAndrews & Forbes declined to comment.Revlon hasn’t made a final decision about a bankruptcy that would keep it operating and talks between the company, advisers and creditors are ongoing, said people with knowledge of the matter who asked not to be named discussing a private transaction. Certain Revlon investors have been in private negotiations with the company that limit their ability to trade its debt, the people added.Some lenders organized with law firm Arnold & Porter Kay Scholer, while bondholders have been working with Stroock & Stroock & Lavan, Bloomberg reported in April. The company is getting advice from attorneys at Paul Weiss Rifkind Wharton & Garrison and investment bank PJT Partners Inc.Retail HoldersSome large institutional investors support Revlon’s restructuring efforts, but the company is having difficulty completing an exchange because a chunk of the bonds are held by mom-and-pop buyers who are less familiar with the swap process, the people said. The company created a website asking investors to turn in their holdings and included stark warnings about the firm’s future.“If you do not act now to participate in the company’s pending exchange offer, repayment of your notes will be at risk,” the company said in a letter signed by CEO Perelman and posted on the website.Investors must weigh whether to swap their holdings for as little as 27.5 cents on the dollar or risk the uncertainty of a bankruptcy. The debt last traded around 27.25 cents, according to Trace.“Bondholders would recover very little, if anything, in the event of a bankruptcy,” JPMorgan Chase & Co. research analyst Carla Casella said in an interview.Holders must turn in their bonds by Nov. 10, though terms of the deal are better if they do so by Nov. 5. In the latest version of the exchange, Revlon removed a 95% participation minimum in favor of a requirement that it must maintain at least $175 million in liquidity to close the deal.Either way, if any of the notes remain outstanding by mid-November, it will trigger the broader loan repayment. Revlon estimates total liquidity was around $347 million as of October 16, including available credit plus around $267 million of unrestricted cash, documents show.If the swap falters, a decision about a potential filing could come around the Nov. 10 final deadline, the people said. The company would also weigh factors like its recent financial performance and cash on hand to fund operations, they added.A successful exchange would give Revlon more time to focus on its turnaround. Even before the pandemic dented makeup demand as people stayed home, the company was struggling to compete with Estee Lauder Cos. and social media savvy makeup startups. Its products are carried in stores like Walmart Inc., CVS Health Corp. and Macys Inc. at a time when shoppers are increasingly migrating to specialty retailers like Sephora USA Inc. and direct-to-consumer brands like Glossier Inc. for makeup purchases.Revlon has been seeking to exchange its 5.75% notes due 2021 since July, and sought feedback from creditors after an initial proposal drew just 5% participation, the people said. The latest offer amended certain terms to avoid the potential for select investors to strike side deals with the company outside the exchange, documents show. Bondholders can receive cash or a combination of cash and new loans.“Without an asset sale or white knight,” Revlon may not have enough cash to pay off bondholders who don’t agree to the exchange, Casella said. “I don’t know how they get through this without filing. These are last-ditch efforts.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.