Revlon (REV) - Get Report shares jumped on Wednesday after a report said the cosmetics icon was close to gaining enough bondholder support to eliminate a key piece of debt and avert a bankruptcy filing.
Revlon said the bondholders had agreed to tender for exchange $236.5 million, or 69%, of a $343 million bond issue. The issue must be paid down by next week to avoid triggering numerous other debt payments, Bloomberg reported.
That total is short of Revlon's original refinancing goal, Bloomberg reported, but the company is expecting additional holders to sign on and is considering whether to close the exchange offer.
The New York company's shares at last check advanced nearly 15% to $10.13. They've traded on Wednesday up as much as 66% at $14.56. Late last November the stock traded at a 52-week high of $25.24.
Revlon has an estimated earnings report date of Nov. 13 for its third quarter.
In August, the company reported a second-quarter net loss of $126.8 million, or $2.37 a share, widening from a loss of $63.7 million, or $1.20, in the year-earlier period.
Revenue dropped 39% to $347.6 million from $570.2 million.
The covid-19, which shut stores and kept consumers home, cost the company some $214 million of revenue. Excluding the Covid-19 impact, net sales on a constant-currency basis were essentially flat from a year earlier.
E-commerce sales rose 58% from a year earlier, as consumers shopped on their online devices.
Online sales accounted for 18% of total revenue in the latest quarter, up from 7% in the year-ago period.