Avon Completes Refinancing Transaction
Avon Products, Inc. announces that on Friday, June 5, the company and one of its domestic subsidiaries entered into a new $400 million five-year senior secured revolving credit facility. The new facility replaces the previous $1 billion unsecured revolving credit facility.
"This new revolver provides us with a five-year maturity and enhanced flexibility under our financial covenants. The new facility is an important part of Avon's ongoing plan to proactively manage our balance sheet and liquidity needs," says James S. Scully, executive vice president and chief financial officer, Avon Products, Inc.
Key features of the new facility include the following:
-the same financial maintenance covenants as the previous facility, but set at less restrictive levels and with certain other modifications,
-guaranteed on a limited recourse basis by the company and in full by certain domestic subsidiaries,
-secured by certain assets, including substantially all U.S. assets and capital stock of certain subsidiaries,
-may be utilized for working capital and other general corporate purposes, and
-any borrowings will bear interest at either a floating base rate plus 150 basis points or LIBOR plus 250 basis points, subject to adjustment based upon a leverage-based pricing grid.
Citigroup Global Markets Inc. and Merrill Lynch, Pierce, Fenner & Smith Incorporated acted as joint lead arrangers and joint bookrunners for the transaction.
"This new revolver provides us with a five-year maturity and enhanced flexibility under our financial covenants. The new facility is an important part of Avon's ongoing plan to proactively manage our balance sheet and liquidity needs," says James S. Scully, executive vice president and chief financial officer, Avon Products, Inc.
Key features of the new facility include the following:
-the same financial maintenance covenants as the previous facility, but set at less restrictive levels and with certain other modifications,
-guaranteed on a limited recourse basis by the company and in full by certain domestic subsidiaries,
-secured by certain assets, including substantially all U.S. assets and capital stock of certain subsidiaries,
-may be utilized for working capital and other general corporate purposes, and
-any borrowings will bear interest at either a floating base rate plus 150 basis points or LIBOR plus 250 basis points, subject to adjustment based upon a leverage-based pricing grid.
Citigroup Global Markets Inc. and Merrill Lynch, Pierce, Fenner & Smith Incorporated acted as joint lead arrangers and joint bookrunners for the transaction.