May 10 - Revlon Inc. said it had replaced Citigroup Inc with collateral and administration on a revolving loan facility months after the bank mistakenly sent $894 million of its own money to repay the cosmetic maker's lenders.
On Monday, MidCap Financial replaced Revlon as part of an amendment to a 2016 loan agreement that extends its maturity nearly a year to 7,2024.This was different from the one that Citi repaid back.
Citi built with the amendment of the loan facility and to the rescuers, earned a fee for its work.
Administrative agents offer housekeeping services between borrowers and lenders, including making interest payments and facilitating borrowings.
In August, Revlon had intended to pay a small interest payment on Citi's behalf but instead used its own money to repay the cosmetics company's loan in full.
While approximately $390 million was donated to Citi, a U.S. judge earlier this year ruled that 10 lenders can not repay the rest of the money.Citi is appealing the decision of Citi.
Revlon's shares fell 9% in afternoon trading after it reported lower quarterly revenue.
Citi said the company remains a partner and it looks forward to continuing to work with them in a number of capacities.
Revlon declined to comment on the announcement by Citi Monday.