Herbalife International
April 12, 2024
LOS ANGELES, April 12, 2024 --
Herbalife completed a 1.6 billion dollar senior secured refinancing, issuing 800 million dollars of 12.25 percent senior secured notes due April 2029 and entering a 400 million dollar Term Loan B facility due April 2029 and a 400 million dollar revolving credit facility due April 2028.
Proceeds were used to repay amounts outstanding under the company's 2018 credit facilities, redeem 300 million dollars of the 600 million dollars of 7.875 percent senior notes due 2025 at 101.969 percent of principal plus accrued interest, and pay related fees, with any remainder for general corporate purposes.
Chief Financial Officer John DeSimone said the transactions advance the company's path to strengthen its balance sheet and cut its total leverage ratio to 3.0 times by the end of 2025. The amended revolving facility includes a maximum total leverage ratio stepping down to 4.00 times by September 30, 2025, and a minimum liquidity coverage of 200 million dollars.