Herbalife Ltd. has just announced the upsizing and pricing of an offering of $800 million aggregate principal amount of senior secured notes due 2029. This is an increase from the previously announced amount of $700 million. The notes have a fixed annual interest rate of 12.25%, which will be paid semi-annually on April 15 and October 15 of each year, starting from October 15, 2024.
The company plans to use the net proceeds from the offering 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, to pay related fees and expenses, and the remainder for general corporate purposes.
This offering is expected to close on April 12, 2024, subject to customary closing conditions.
Herbalife Ltd. is a global health and wellness company that offers science-backed products to consumers in more than 90 markets through entrepreneurial distributors who provide one-on-one coaching and a supportive community. The company has been changing people’s lives with nutrition products and a business opportunity for its independent distributors since 1980. Following these announcements, the company's shares moved 3.6%, and are now trading at a price of $8.14. For more information, read the company's full 8-K submission here.
