NEW YORK, June 8, 2015 /PRNewswire/ -- Avon Products, Inc. (NYSE: AVP) today announced that on Friday, June 5, the company and one of its domestic subsidiaries entered into a new $400 million five-year senior secured revolving credit facility. The new facility replaces the previous $1 billion unsecured revolving credit facility.

"This new revolver provides us with a five-year maturity and enhanced flexibility under our financial covenants. The new facility is an important part of Avon's ongoing plan to proactively manage our balance sheet and liquidity needs," said James S. Scully, Executive Vice President and Chief Financial Officer, Avon Products, Inc.

Key features of the new facility include the following:


    --  the same financial maintenance covenants as the previous facility, but
        set at less restrictive levels and with certain other modifications,
    --  guaranteed on a limited recourse basis by the company and in full by
        certain domestic subsidiaries,
    --  secured by certain assets, including substantially all U.S. assets and
        capital stock of certain subsidiaries,
    --  may be utilized for working capital and other general corporate
        purposes, and
    --  any borrowings will bear interest at either a floating base rate plus
        150 basis points or LIBOR plus 250 basis points, subject to adjustment
        based upon a leverage-based pricing grid.

Citigroup Global Markets Inc. and Merrill Lynch, Pierce, Fenner & Smith Incorporated acted as joint lead arrangers and joint bookrunners for the transaction.

About Avon Products, Inc.

Avon is the company that for more than 125 years has stood for beauty, innovation, optimism and, above all, for women. Avon, with nearly $9 billion in annual revenue, has products that are sold through 6 million active independent Avon Sales Representatives worldwide. Avon products include color cosmetics, skincare, fragrance, and fashion and home, featuring such well-recognized brand names as Avon Color, ANEW, Avon Care, Skin-So-Soft, and Advance Techniques. Learn more about Avon and its products at www.avoncompany.com.

Forward-Looking Statements

Statements in this release that are not historical facts may be forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties are detailed from time to time in reports filed by Avon Products, Inc. with the Securities and Exchange Commission, including Forms 8-K, 10-Q, and 10-K. Some forward-looking statements in this release include and concern our liquidity, uses of cash, financing and debt obligations. These forward-looking statements involve risks, uncertainties and other factors, which may cause the actual results, levels of activity, performance or achievement of Avon to be materially different from any future results expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, our ability to improve our financial and operational performance and the impact of a continued decline in our business results, the possibility of business disruption, general economic and business conditions in our markets, including fluctuations in foreign currency exchange rates, and any changes to our credit ratings. Any forward-looking statements speak only as of the date they are made. The Company does not undertake to update any such forward-looking statements.

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SOURCE Avon Products, Inc.