Herbalife Ltd. (NYSE: HLF) has announced its intention to offer $700 million aggregate principal amount of senior secured notes due 2029. The net proceeds from the offering will be used to repay indebtedness, including borrowings outstanding under the company’s senior secured credit facility and a portion of the company’s 7.875% senior notes due 2025, as well as for general corporate purposes.
It's important to note that the offering is subject to market and other conditions, and the company has specified that the notes have not been and are not expected to be registered under the securities act or the securities laws of any other jurisdiction.
As of the last reporting period, Herbalife Ltd. had a debt-to-equity ratio of 1.35, which was an increase from the previous period's ratio of 1.15. Additionally, the company's interest coverage ratio stood at 3.5, marking a decrease from the previous period's ratio of 4.2.
The company's cash and cash equivalents also showed a change, with a reported decrease from $578 million in the previous period to $512 million in the most recent period.
Herbalife Ltd. has been a prominent player in the health and wellness industry since 1980, offering science-backed products to consumers in more than 90 markets through entrepreneurial distributors who provide one-on-one coaching and a supportive community for embracing a healthier, more active lifestyle. As a result of these announcements, the company's shares have moved -6.7% on the market, and are now trading at a price of $9.38. Check out the company's full 8-K submission here.
