Revlon Shares Surge 48% On Debt-Exchange Offer News
Revlon Inc. (NYSE:REV) closed up 47.6% today on news that the cosmetics giant could be poised to substantially cut its debt load.
The news comes on Revlon’s announcement of a debt-exchange offer that could potentially keep the company out of bankruptcy. Revlon aims to buy back around $343 million of 5.75% in bonds with a November 16 default deadline.
Revlon has angered some bondholders — including billionaire Carl Icahn — by telling them they will only get 32 cents on the dollar in cash because it can’t find the holders of about $90 million in bonds, who will now get paid in full.
While it can be normal for companies to have mystery bondholders, Revlon’s situation doesn’t exactly fit the mold…
“It’s certainly not customary to have that percentage be the magnitude of 26 percent,” Peter Kaufman, a distressed investment banker and head of Gordian Group LLC, told the New York Post.
If a deal doesn’t happen before the November 16 deadline, Revlon could be forced into bankruptcy proceedings — and its stock could become worthless.
Posts contain affiliate links. Timothysykes.com may get compensated for affiliate posts and purchases through links.
Share
How much has this post helped you?
(No Ratings Yet)
Loading...
Hey Everyone,
As many of you already know I grew up in a middle class family and didn't have many luxuries. But through trading I was able to change my circumstances --not just for me -- but for my parents as well. I now want to help you and thousands of other people from all around the world achieve similar results!
Which is why I've launched my Trading Challenge. I’m extremely determined to create a millionaire trader out of one my students and hopefully it will be you.
So when you get a chance make sure you check it out.
PS: Don’t forget to check out my 30 Day Bootcamp, it will teach you everything you need to know about trading.