NEW YORK, June 8, 2015 /PRNewswire/ -- Avon Products,
Inc. (NYSE: AVP) today announced 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," said 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.
About Avon Products, Inc.
Avon is the company that for
more than 125 years has stood for beauty, innovation, optimism and,
above all, for women. Avon, with
nearly $9 billion in annual revenue,
has products that are sold through 6 million active independent
Avon Sales Representatives worldwide. Avon products include color cosmetics,
skincare, fragrance, and fashion and home, featuring such
well-recognized brand names as Avon Color, ANEW, Avon Care,
Skin-So-Soft, and Advance Techniques. Learn more about Avon and its products at
www.avoncompany.com.
Forward-Looking Statements
Statements in this release that are not historical facts may be
forward-looking statements that involve risks and uncertainties
that could cause actual results to differ materially. These risks
and uncertainties are detailed from time to time in reports filed
by Avon Products, Inc. with the Securities and Exchange Commission,
including Forms 8-K, 10-Q, and 10-K. Some forward-looking
statements in this release include and concern our liquidity, uses
of cash, financing and debt obligations. These forward-looking
statements involve risks, uncertainties and other factors, which
may cause the actual results, levels of activity, performance or
achievement of Avon to be
materially different from any future results expressed or implied
by such forward-looking statements. These risks and uncertainties
include, but are not limited to, our ability to improve our
financial and operational performance and the impact of a continued
decline in our business results, the possibility of business
disruption, general economic and business conditions in our
markets, including fluctuations in foreign currency exchange rates,
and any changes to our credit ratings. Any forward-looking
statements speak only as of the date they are made. The Company
does not undertake to update any such forward-looking
statements.
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SOURCE Avon Products, Inc.