- Revlon Inc. said it had replaced Citigroup Inc as collateral and administrator on a revolving loan facility months after the bank mistakenly sent $894 million of its own money to repay the cosmetic industry's lenders.
On Monday, Citi replaced Revlon MidCap Financial with MidCap Financial in order to extend its loan agreement on May 7, 2024.This facility is different from the one by Citi repaid.
Citi earned The modification of the loan facility and assisted for its work a fee.
Administrative agents provide housekeeping services between borrowers and lenders, including sending interest payments and facilitating borrowings.
In August, Revlon and Citi had originally intended to make a small interest payment on Citi's behalf but instead used its own money to repay the cosmetics company's loan in full
While around $390 million was refunded to Citi earlier this year, a U.S. judge ruled that 10 lenders need not repay the remaining.Citi appeals the decision.
Revlon shares fell 9% in the afternoon trading after it reported lower quarterly revenue.
Citi said the company remains a partner and looks forward to continuing to work with them in a number of capacities.
Revlon refused to comment on Monday's announcement from Citi.