Physicians Formula increases credit facility
AZUSA, Calif. Beauty company Physicians Formula has entered into a third amendment to its existing senior credit agreement with Union Bank of California, N.A. to increase the credit facility by $5 million to $25 million.
The applicable interest rates on the revolving credit facility remain the same at LIBOR plus 1.75 percent or a base rate plus 0.25 percent.
As of Sept. 30, the company had $2 million of outstanding indebtedness under its revolving credit facility, no letters of credit and $18 million available for borrowing under its revolving credit facility and $11.3 million of borrowings under the term loan facility.
The amendment also amends the maximum total leverage ratio covenant and the minimum net worth covenant, and imposes a condition that any time the company makes a repurchase of common stock, it must have minimum availability under its revolving credit facility after giving effect to the repurchase.
“We are very pleased to have successfully expanded our credit agreement in the current credit market environment and believe this underscores the confidence our lenders have in our business platform and ability to execute on our future strategies,” said Joseph Jaeger, chief financial officer of Physicians Formula. “This increase combined with our expected future operating cash flow will provide additional financial flexibility for the future.”
Johnson’s launches new Johnson’s Body Care collection
NEW YORK Johnson’s Body Care, which is built on the long-standing heritage of the Johnson’s brand, is gearing up for 2009 with a new collection that features new products, enhanced formulas, fragrances and packaging.
Last year, the brand jazzed up the body care category at mass with the introduction of its Johnson’s Melt Away Stress collection. For 2009, Johnson’s Body Care is launching the new Forever Fresh line. The new Forever Fresh Refreshing Body Lotion features a time-release fragrance and the Refreshing Body Wash fragrance has notes of melon, apple and lily of the valley.
The brand’s 24 Hour line, the most popular line of the collection, has the same popular fragrance but is formulated to be richer and more luxurious.
In addition, the brand’s Exfoliating Body Wash with dissolving micro beads has been coupled with a new Cocoa & Shea Butter Body Lotion to complete the Be Radiant line.
The entire collection now features bolder and fresher packaging. The names “Softlotion” and “Softwash” have been removed from the bottles and have been placed with the phrase “Body Care.”
The collection is now comprised of the following:
• 24 Hour Moisturizing body wash and 24 Hour lotion
• Melt Away Stress Lavender & Chamomile body lotion and Melt Away Stress Relaxing body wash
• Forever Fresh Refreshing body lotion and Forever Fresh Refreshing body wash
• Deep Hydrating extra dry skin lotion and Deep Hydrating Intense Moisture body wash
• Feeling Healthy green tea lotion and Feeling Healthy green tea body wash
• Be Radiant exfoliating body wash and Be Radiant cocoa and shea butter body lotion.
Report shows attitudes trending towards eco-friendly beauty products
PORT WASHINGTON, N.Y. Retailers looking to bolster sales in the beauty aisle are wise to stock their shelves with eco-beauty products, suggests a new report by The NPD Group.
According to the report, titled “Natural-Organic Trends in Beauty 2008,” the market research company found that at least 2-out-of-3 beauty product users are interested in some form of eco-beauty products. Eco-beauty products can be defined as either being natural, organic, green/eco-friendly or socially conscious/responsible beauty products.
“Whether the consumer demand is driven by the desire to save the planet, concerns about product safety or potential health risks, or just being on ‘on-trend,’ being part of the current environmental movement makes good business sense,” said Karen Grant, vice president and senior global beauty industry analyst.
Natural beauty products are the most developed of these categories with about two-thirds of women who use beauty saying they have used natural beauty products. That is at least twice as many women who said they have used organic (32 percent) or green/eco-friendly (26 percent) products.
Socially conscious/responsible beauty products are second in popularity in terms of usage, with nearly 4-out-of-10 women stating they have used these products.
While green/eco-friendly beauty products have been used by the least number of beauty product users, they did rank second in interest among beauty mavens. Based on this finding, green/eco-friendly have the greatest opportunity to expand from interest to usage, as does organic, according to NPD.