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Revlon, Inc. (REV) Announces Plans to Reduce Corporate Debt by $170 Million

Revlon, Inc. (NYSE: REV), a worldwide cosmetics, skin care, fragrance, and personal care products company that delivers the promise of beauty through creation and development, recently announced that the company plans to reduce its debt by $170 million by repaying the $170 million MacAndrews & Forbes Senior Subordinated Term Loan (the “M&F Term Loan”) that matures on August 1, 2009.

Management will achieve this debt reduction in two steps. First, the company will use $63 million of the net proceeds from the sale of its Bozzano business in Brazil to repay a significant portion of the $170 million M&F Term Loan. Secondly, Revlon intends to launch, as early as in the fourth quarter of 2008, a $107 million equity rights offering that would allow stockholders to purchase additional shares of Revlon Class A common stock. Revlon intends to use the net proceeds of such equity issuance to fully repay the remaining balance of the M&F Term Loan.

Commenting on the company’s debt reduction strategy, Revlon president and chief executive officer, David Kennedy recently stated, “By repaying the M&F Term Loan, we will eliminate our highest cost, nearest maturity debt, which carries an annual cash interest cost of almost $19 million. Improving our capital structure with this important step is consistent with a key aspect of our strategy.”

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