Industry vet Michael Piff joins CCA Industries
EAST RUTHERFORD, N.J. — Beauty company CCA Industries has appointed Michael Piff as EVP sales.
Piff joins CCA with extensive industry experience at such companies as DowBrands, Minnetonka Brands and Cosrich/Health Science Labs, and will be based at company headquarters in East Rutherford.
“I look forward to working with Michael as we build CCA’s business and enhance our relationships with the retail trade,” CCA president and CEO Dunnan Edell said.
Physicians Formula completes subordinated debt refinancing
AZUSA, Calif. — Beauty company Physicians Formula Holdings has completed the previously announced refinancing of its subordinated debt held by Mill Road Capital, and expects interest expense to be reduced by $1.5 million for the first 12 months, following the refinancing.
The company refinanced $8.9 million of subordinated debt principal, accrued paid-in-kind interest, accrued interest expense, and prepayment penalties under the Mill Road subordinated debt, with proceeds from its previously announced $4 million term note with Wells Fargo Business Credit and borrowings of $4.9 million under its existing line of credit with Wells Fargo.
"The completion of our refinancing is an important step in the improvement of Physicians Formula’s cost of capital and financial flexibility, and will help ensure that we have the financial resources necessary to execute our growth strategies. The significant savings that will be generated, coupled with the success we have seen in our 2011 investment strategy, has set the foundation for both growth and profitability in 2012,” Physicians Formula chairwoman and CEO Ingrid Jackel said.
This refinancing lowers the company’s interest expense and extends debt maturities. The company noted that the primary, specific benefits of the refinancing are as follows:
The effective, annualized borrowing rate on the new term note is LIBOR plus 3.5%, or approximately 3.9% using the three-month LIBOR rate as of Nov. 11. This is significantly lower than the cost of the Mill Road subordinated debt, which was 14.1% when including the impact of annually compounded paid-in-kind interest expense;
The borrowing rate on the line of credit with Wells Fargo has been reduced from LIBOR plus 3.5% to LIBOR plus 2.75%; and
The maturity date on the line of credit with Wells Fargo has been extended by three years, from November 2012 to November 2015. The term note also expires in November 2015, versus the Mill Road subordinated debt’s maturity of November 2014.
Given current rates and the borrowing costs noted above, the company expects to save approximately $1.5 million in interest expense in the first 12 months following the refinancing, before the impact of one-time refinancing costs. This translates to approximately 6 cents of earnings per diluted common share, net of tax.
The company incurred $1.3 million of one-time expenses associated with the refinancing on Nov. 10, 2011. The company noted that it expects another $100,000 of refinancing-related legal fees in the coming months. In total, these one-time expenses are expected to be the equivalent of a decrease of 6 cents of earnings per diluted common share, net of tax, and will be reflected on the company’s fourth quarter 2011 profit and loss statement.
Nair awards ‘Step Out Challenge’ grand-prize winner
PRINCETON, N.J. — Church and Dwight, the maker of Nair hair removal products, has concluded the second annual "Step Out Challenge" and named a grand-prize winner.
More than 1,400 people who tried Nair shared their smooth skin experiences through written and video testimonials and received free music from Grooveshark, a music-streaming website. The grand-prize winner, Kelly Wilkie from New York, received a weekend experience, including VIP tickets to one of this year’s most sought-after concerts.
In her video, Wilkie highlighted her favorite product, Nair face wax strips. These strips are part of a line of Nair facial products, including several depilatories — moisturizing face cream, precision face and upper lip kit and sensitive formula face cream.