NEW YORK (

TheStreet

) --

Revlon

(REV) - Get Report

reached a new 52-week high after the cosmetics maker was upgraded and announced plans to offer $330 million in a senior notes offering.

In response, shares are surging 37.9% to $14.87 in afternoon trading.

BMO Capital Markets analyst Connie Maneaty upgraded the stock to outperform from market perform, citing a better outlook and improving financials.

Maneaty expects the company will top its free cash flow this year and next. It has also regained its No. 1 spot in the lip sector, with 22.3% of the market share.

Revlon has also reduced its costs by cutting jobs and negotiating lower rates for advertising.

Separately, Revlon said subsidiary Revlon Consumer Products will offer $330 million in senior notes, due 2015.

The proceeds from the offering will be used to pay the total tender offer amount of its previously announced move to buy $340.5 million of senior notes due April 2011 and pay premium and accrued interest on the notes.

-- Reported by Jeanine Poggi in New York

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