Cosmetics maker Revlon Inc. has begun talks with lenders ahead of looming maturities of debt to try to steer the business clear of bankruptcy, WSJ Pro Bankruptcy reported. A group of lenders including Angelo Gordon, Glendon Capital Management LP and King Street Capital Management are in restructuring discussions with Revlon about pushing out the due date on roughly $1.7 billion in debt that matures as early as 2024. Centerview Partners is advising the lender group on negotiations, alongside legal counsel Davis Polk & Wardwell LLP, the people familiar said. The lender group holds as its collateral certain intellectual-property assets that Revlon pledged to them in a 2020 deal that drew criticism from some hedge funds. Revlon, which has struggled with the increasing popularity of new brands from social-media influencers such as Kylie Jenner and others, narrowly escaped bankruptcy in 2020 when it faced down another debt maturity as masked-up, stuck-at-home consumers cut back on makeup and accessories during the pandemic. Sales and earnings have rebounded in recent quarters as consumer shopping habits returned closer to prepandemic levels. But the company’s outlook is still challenged given its need to raise capital for liquidity needs, S&P Global Ratings said in April.
