Investors in cosmetics-maker Revlon (NYSE: REV) had a very good day Tuesday. As trading wore down for the day, Revlon stock closed up 47.6% on news that Revlon may be about to cut its debt load substantially.
By the way, Revlon has a substantial debt load. Against a market capitalization of just $318 million before today's run-up, Revlon has stacked up $3.4 billion worth of debt (net of cash, according to data from S&P Global Market Intelligence ).
To try to whittle that down a bit, Revlon has been negotiating with its creditors to exchange some $342.8 million worth of "5.75% Senior Notes due 2021" for either cash (buying back debt at $0.32 on the dollar) or a mix of cash and new debt, with this option valued at $0.50 on the dollar.
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Why Revlon Stock Soared 48% Today