Bonds of cosmetics maker Revlon, which is controlled by billionaire Ron Perelman, dropped to alltime lows Friday after the company reported a sharp drop in sales and profit margins.
Its 6.25% 2024s, issued last year to finance the acquisition of Elizabeth Arden, fell over seven points to a record low of 66.5 cents on the dollar, according to MarketAxess data.
The less-liquid 5.75% 2021s initially dropped 8.5 points to 78.25 before recovering slightly.
Third-quarter results showed an acceleration in sales declines in Revlon’s professional and consumer divisions, while realized synergies from the Arden acquisition were also lower than expected, according to analysts.
Revlon’s third-quarter sales declined 10.5% compared to a year ago, assuming that the business had already been combined with Arden, while gross profit margin declined 2.3 percentage points to 56.5%.