Nov 9 - Shares of Revlon Inc jumped 35 percent to a new year-high on Monday, after the cosmetics maker said its consumer products unit received lender consents to amend its bank term-loan and revolver credit agreements to refinance its long-term debt .
The company also said the unit, Revlon Consumer Products Corp, will offer $330 million principal amount of senior secured notes due 2015.
The proceeds from the offering will be used to pay the total tender offer amount of its previously announced move to buy $340.5 million of senior notes due April 2011 and pay premium and accrued interest on the notes.
BMO Capital Markets raised Revlon to outperform from market perform and said the company's financial condition is improving and is now dealing with its debt load.
On Friday, the company said it got required lender consents to amend its credit agreements, allowing the unit to conduct certain refinancing transactions.
Revlon continues to make operational headway, has negotiated very favorable media rates through October 2010 and is now addressing its debt load, BMO analyst Connie Maneaty said in a note to clients.
Things are looking up, she said.
Revlon has generated growth in lip makeup, regaining the number 1 spot with 22.3 percent of market share, with ColorStay Ultimate Liquid Lip being this year's 'big winner,' Maneaty said.
Earlier this month, Revlon said it was seeking to amend its credit agreements.
The company, which sells its products under brands such as Charlie and Mitchum, would see operating expenses decline as a percentage of sales, benefiting from job cuts and lower permanent display amortization expense, the analyst said.
Shares of the company, controlled by financier Ronald Perelman, leaped to touch a new year-high of $14.50. They were up 32 percent at $14.30 in midday trading on the New York Stock Exchange. (Reporting by Vidya Lakshmi in Bangalore; Editing by Gopakumar Warrier)