Revlon, the popular cosmetics company, is reportedly set to launch a refinancing plan with the help of a $1.8 billion debt package from lenders. This news comes amidst objections from some of Revlon’s lenders, who claim that the company violated the terms of its debt agreements last year. However, Revlon contends that no default occurred because the asset transfer was allowed under the debt documents pertaining to its American Crew brand’s intellectual property.

Despite these objections, Revlon managed to secure the majority of votes from lenders required to approve the debt refinancing before the Friday deadline. Concurrently, the company has been working on relaunching the Revlon brand in China, as it initially exited the Chinese market back in 2014.

Revlon has been grappling with challenges in attracting younger customers and competing with industry giants like L’Oreal and Estee Lauder. Its sales have witnessed a decline for at least five consecutive quarters, and preliminary fourth-quarter revenue figures stood at $699.4 million, falling well below market estimates of $755.4 million. Additionally, as of December 31, 2019, Revlon had accrued long-term debt amounting to $2.91 billion.

In an effort to improve profitability, Revlon’s parent company recently announced its expectation to save up to $230 million per year by the end of 2022. This would involve mainly cutting nearly 1,000 positions. The company is also exploring various options with Goldman Sachs.

Moreover, Revlon has entered into an agreement with Jefferies Finance LLC for $850 million in new finance. This will allow for the repayment of senior loans due in February 2021, along with a 2019 term loan.

With the launch of this refinancing plan, Revlon is aiming to address its financial challenges and enhance its standing in the highly competitive cosmetics industry. The success of this plan will be pivotal in determining the company’s future growth and profitability.

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