KSV Advisory Canada’s Leading Boutique Advisory, Restructuring and Valuations Firm.

Revlon, Inc. and 50 related parties, including two Canadian entities (collectively, “Revlon”), operate as a global leader in the beauty industry, with a diverse portfolio of brands, including the iconic Revlon and Elizabeth Arden brands, spanning multiple beauty segments. Revlon’s portfolio consists of over 20 key brands associated with thousands of products sold in approximately 150 countries worldwide. Revlon is known for its extensive array of beauty offerings, including colour cosmetics, fragrances, hair colour, hair care, skin care, beauty tools, men’s grooming products, deodorants and other beauty care products, which it develops, manufactures, sells and markets globally through a variety of distribution channels.

Revlon commenced insolvency proceedings in the US with a filing under Chapter 11 of the United States Code. In June, 2022, when the proceeding commenced: (a) Revlon’s annual revenue was approximately $2 billion; (b) the book value of its liabilities on a consolidated basis was approximately $4 billion; and (c) Revlon had approximately 2,823 employees, including 102 employed by the two Canadian Revlon debtors. 

KSV was appointed by the Ontario Superior Court of Justice (the “Canadian Court”) as the Information Officer under Part IV of the Companies’ Creditors Arrangement Act in Revlon’s cross-border proceedings.

The objective of the restructuring proceedings was to implement a recapitalization of Revlon’s balance sheet, to be accomplished, in part, through cross-border debtor-in-possession (“DIP”) facilities negotiated with certain of Revlon’s prepetition lenders prior to the filing. The DIP facilities are comprised of: (a) a senior secured post-petition asset-based revolving credit facility in the aggregate principal amount of US$400 million (the “ABL DIP Facility”); and (b) a senior secured priming post-petition term loan credit facility in the aggregate principal amount of US$575 million, with an incremental uncommitted facility in the amount of US$450 million (the “Term DIP Facility”). The ABL DIP Facility and the Term DIP Facility were both approved by the US Court and recognized by the Canadian Court.

Over the course of the proceedings, the Canadian Court relied on financial analyses, reports and recommendations from KSV, as Information Officer, before granting orders and/or recognizing orders issued by the US Court in the Chapter 11 proceedings. In April, 2023, Revlon’s Joint Plan of Reorganization (the “Plan”) was confirmed by the US Court and recognized by the Canadian Court. The Plan was implemented in May, 2023. The Plan was a complex going-concern solution that was ultimately approved on a consensual basis. Revlon’s US and Canadian businesses continue to operate.