The proceeds of the new BrandCo facility are used to fully repay (i) the outstanding debt contracted under Products Corporation`s Term Loan Facility of August 6, 2019 (the «Refinancing») (ii) to pay the fees and expenses related to the Facilities and refinancing and (iii) to a surplus, for general business purposes. Proceeds from the BrandCo Roll-up Facility will be used to purchase an equivalent amount of fixed-term loans under the 2016 Term Loan Facility held by lenders participating in the New BrandCo Facility. The opposing lenders argue that the $65 million earmarked to repay the revolver after the completion of the amendment proves that the commitments were intended only to raise votes, not for working capital purposes, as revealed. Revlon`s second quarter results show that the $65 million revolver was paid for in full on May 28, 2020. Press reports also showed that Citi resigned as agent of the 2016 fixed-term credit facility on May 29, 2020. The financing of the facilities depends on compliance with a limited number of customary conditions, including the execution of final loan documents for the facilities and the modification of the renewal, the absence of major adverse changes and certain other customary conditions. In addition, the financing of the Facilities is dependent on the approval of Products Corporation by lenders holding more than 50% of outstanding loans under the 2016 Term Loan Facility, as described below. The obligations set out in the letter of commitment are available to the company until 14 May 2020. According to the complaint, Revlon was only able to borrow rescue financing by taking over some of the branded assets that secure the 2016 loan and mortgaging them as collateral to other lenders, including Ares Management Corp. Revlon also issued $65 million in revolving credits to manipulate a lender vote in favor of one of the restructuring maneuvers, according to the complaint. This report (including these investments) contains the Company`s plans, expected financial results and liquidity, expected synergies, strategies, focus, beliefs and forward-looking expectations, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Some of the forward-looking statements contained in this report can be identified by the use of forward-looking words such as «believes», «anticipates», «projected», «may», «may», «should», «should», «anticipated», «planned» or other comparable terms.
Forward-looking statements relate only to the date they are made and, with the exception of the Company`s ongoing commitments in the United States. The Federal Securities Act does not require the Company to publicly update any forward-looking statements, whether or not they reflect actual results of operations; financial developments; changes in results of operations and liquidity, changes in general economic or sectoral conditions in the United States or in industry; changes in estimates, expectations or assumptions; or other circumstances, conditions, developments or events occurring after the date of this report. They should not rely on forward-looking statements as predictions of future events. The Company provides the specific forward-looking information contained in this report solely to provide investors with certain useful information that will assist them in assessing the refinancing operations planned for 2020. . . .