Ronald Perelman’s Stake in Revlon May Drop By Almost 20%

Revlon Inc.’s recently announced debt-for-equity swap could reduce MacAndrews & Forbes Holdings Inc.’s stake in the company to less than 65% — a significant drop from the 83% the finance vehicle controlled by Ronald Perelman currently owns, according to a Dow Jones report.

Revlon’s webcast today shed more light on the company’s debt reduction plan, which was hailed by analysts as a boon for the cosmetics maker, which has been struggling amid declining cosmetics industry sales. Last week, Revlon revealed that the plan, which also includes a debt-for-equity agreement with Fidelity Investments, should reduce the company’s total debt by about 50% by March 31, 2006.

If the scenario outlined by Revlon’s management holds, Fidelity’s share in the company will be 16.8%, with other bondholders owning 15.1% of the company, and the public holding the remaining 3.4%. Company officials, however, cautioned that the figure is based on the pro forma outlook for 2004, and that “countless other scenarios” are possible.