By Christiana Sciaudone
Investing.com -- Revlon Inc (NYSE:REV) rose 4% Thursday after reaching a deal to avoid bankruptcy.
The cosmetics company said on Wednesday that holders of 69% of its bonds have agreed to accept lower debt repayments. Among the lenders is billionaire investor Carl Icahn, The New York Post reported, citing people familiar with the situation. Revlon had been offering lenders either 32.5 cents on the dollar in cash or a mixture of cash and bonds worth about 50 cents on the dollar, according to the Post. Final terms were not disclosed.
Revlon said it determined that all the conditions of the exchange were met and that it expects the deal to close Friday. "As a result, the company does not expect that any bankruptcy or insolvency proceeding will be necessary," the company said in a statement.
Debra Perelman, Revlon's Chief Executive Officer said the deal "represents an important step towards strengthening our capital structure and better positions us to focus on our future growth."
Perelman noted the company still has challenges to face, chief among them the ongoing pandemic.
Revlon is scheduled to report third quarter earnings later today. In the previous quarter, it posted a loss of $1.73 a share as revenue dropped 39%, to $347 million.