OREANDA-NEWS. S&P Global Ratings today assigned its 'B+' issue-level rating and '4' recovery rating to Revlon Consumer Products Corp.'s proposed $400 million senior unsecured notes due 2024. The '4' recovery rating indicates our expectation for average recovery (30%-50%; lower half of the range) of principal in the event of a payment default.

The notes will be an unsecured obligation of the company and rank equally in right of payment with Revlon's existing and future senior unsecured debt. The company plans to use the proceeds from the offering, plus balance sheet cash, a $100 million draw under its revolving credit facility, and $1.8 billion term loan B proceeds, to fund its acquisition of Elizabeth Arden Inc., refinance its existing term loans, and repay existing Elizabeth Arden debt. We expect that Revlon's leverage, pro forma for the Elizabeth Arden acquisition, will increase to about 6x at end of fiscal year ending Dec. 31, 2016.