Herbalife International
December 7, 2022
Herbalife Nutrition priced a private offering of 250 million dollars of 4.25 percent convertible senior notes due June 15, 2028, sold to qualified institutional buyers. Initial purchasers received an option to buy up to an additional 37.5 million dollars of notes. The notes carry an initial conversion price of about 16.98 dollars per share, roughly a 30 percent premium to the December 6 closing price of 13.06 dollars.
Herbalife estimated net proceeds of about 241.9 million dollars, or about 278.4 million dollars if the option is exercised in full. The company planned to use about 274.9 million dollars, funded by the offering and either additional notes or revolver borrowings, to repurchase 287.5 million dollars of its existing 2.625 percent convertible notes due 2024 in privately negotiated transactions. The sale was expected to close on or about December 9.