(Reuters) – Revlon Inc said it had replaced Citigroup Inc as its collateral and administrative agent on a revolving loan facility, months after the bank mistakenly sent $894 million of its own money to repay the cosmetic maker’s lenders.
Revlon on Monday replaced Citi with MidCap Financial, as part of an amendment to a 2016 loan agreement that extends its maturity nearly a year to May 7, 2024. This facility is different from the one that Citi repaid.
Citi assisted with the amendment to the loan facility and earned a fee for its work.
Administrative agents offer housekeeping services between borrowers and lenders, including sending interest payments and facilitating borrowings.
In August, Citi had intended to make a small interest payment on Revlon’s behalf, but instead used its own money to repay the cosmetics company’s loan in full.
While about $390 million was returned to Citi, a U.S. judge earlier this year ruled that 10 lenders need not repay the remainder. Citi is appealing the decision.
Revlon’s shares fell 9% in afternoon trading after it reported lower quarterly revenue.
The company said Citi remains a partner and it looks “forward to continuing to work with them in a number of capacities”.
Citi declined to comment on Monday’s announcement from Revlon.
(Reporting by Uday Sampath in Bengaluru; Editing by Amy Caren Daniel)
