Debt tied to Revlon Inc. soared to the highest since January of last year as the cosmetics company reworks its balance sheet. The company’s 6.25% senior unsecured bonds rose more than 5 cents on the dollar to a high of 47.25 cents on Wednesday.

• Revlon is refinancing its $130 million asset-based lending facility
• The company’s bonds inched higher on the news starting Tuesday and were among the top gainers in the U.S. high-yield market on Wednesday, according to Trace bond trading data
  • The notes rose the most since November of 2020, pushing the yield to 35%
  • They have returned 28% so far this year
• Revlon’s shares also increased to a high of $17.57 before falling 4% to $16.31 at 3:55 p.m. in New York

• About $450 million of Revlon’s notes are outstanding, with the next coupon payment due in 51 days

  • They’re rated C by S&P and C by Moody’s

• Net debt to adjusted Ebitda stood at 24 times in most recent reporting period, data compiled by Bloomberg show
  • Ebitda to interest is -0.3
• The company is controlled by Ronald Perelman’s MacAndrews & Forbes Inc.
• A representative from Revlon declined to comment beyond a news release announcing the refinancing