Revlon extends conditions of loan to reduce debt
NEW YORK Beauty company Revlon is amending its $107 million senior subordinated term loan agreement with MacAndrews & Forbes Holdings, Revlon’s majority stockholder, to extend the term of its previously announced equity rights offering.
The term loan will continue to provide that Revlon may, at its option, prepay such loan, in whole or in part, at any time prior to maturity, without premium or penalty, bears interest at an annual rate of 11 percent, payable quarterly in cash, and is unsecured and subordinated to Revlon’s senior debt.
Revlon reaffirmed its intent to launch a $107 million equity rights offering to reduce debt by the same amount. The rights offering would allow stockholders to purchase additional shares of Revlon Class A common stock.
The proceeds of the rights offering would be used to fully repay the remaining principal balance of the term loan. Given the current conditions in the capital markets, Revlon is monitoring the financial markets closely to assess the appropriate timing of the rights offering.
As announced on Sept. 3, Revlon used $63 million of the net proceeds from the previously announced July sale of its non-core Brazilian brands to repay $63 million in aggregate principal amount of the then $170 million term loan. This repayment will result in annualized interest savings of approximately $7 million.
MacAndrews & Forbes, which is wholly-owned by Ronald O. Perelman, beneficially owns as of this date approximately 58 percent of Revlon’s outstanding Class A common stock, 100 percent of Revlon’s Class B common stock and approximately 61 percent of Revlon’s combined outstanding shares of Class A and Class B common stock, which together represent approximately 75 percent of the combined voting power of such shares.
Inter Parfums reports results for Q3 2008
NEW YORK Inter Parfums, which develops and supplies mass market fragrances as well as personal care products for such specialty retailers as Gap, Banana Republic and New York & Company, posted third quarter results.
Net sales for the quarter rose 21 percent to $123.5 million from $102.3 million in the year-ago period. At comparable foreign currency exchange rates, net sales rose 16 percent.
Sales by U.S.-based operations rose 4 percent to $14.7 million from $14.2 million in the year-ago period.
Net income rose 9 percent to $6.2 million compared with $5.7 million last year. Diluted earnings per share increased 11 percent to 20 cents from 18 cents per diluted share.
“Net sales by U.S.-based operations rose 4 percent despite the high hurdle set in last year’s third quarter with the rollout of Gap personal care products to their North American stores. In the current third quarter, the year-over-year sales growth by U.S.-based operations was primarily attributable to the international distribution of both Gap and Banana Republic products,”said Jean Madar, chairman and chief executive officer of Inter Parfums. “The final quarter of 2008 will include initial sales of Brooks Brothers New York, our first new fragrance collection for men and women, which is now in all U.S. Brooks Brothers locations. Also the color cosmetics we developed and produced for bebe stores are now in their U.S. stores and we are making progress with a signature fragrance for the brand, which is expected to come to market next year.”
Drom names Verspoor to position in creative perfumery group
MUNICH, Germany Fragrances has announced the addition of Kevin Verspoor to its creative perfumery team.
Verspoor joins drom from Fragrance Resources. His experience also includes working at several houses such as Symrise, Manheimer and IFF.
During his career, Verspoor has helped create fragrances for Jennifer Lopez, Bath and Body Works, Victoria?s Secret, Slatkin and Company, Riviera Concepts and Sephora.