Shares of cosmetic giant Revlon (NYSE: REV) have surged over 36% on Wednesday after the company announced it has reached a deal with bondholders to keep the company out of bankruptcy.
The New York-based business has been heavily impacted by the coronavirus outbreak as demand for beauty products has fallen with net sales falling 39% in the second quarter.
Revlon has a deadline of November the 16th to restructure $343 million in bonds, and have to pay the bonds in full or trigger a due date on $1 billion in senior loans that would plunge them into bankruptcy.
The company revealed in a press release today that investors holding $236.5 million of the $343 million in bonds have accepted a deal, but it is still below the 80% of bondholders needed to agree.
The company also said that they may decide to extend the current exchange offer. If they can agree on a deal for the full $343 million in bonds, they will have until 20324 until its next debt maturity.
The news has seen Revlon shares surge as high as $14.53. They are currently priced at $11.46 per share, up 30.38% on the day.