Leading health and wellness firm Herbalife said today that it is nearing completion on its previously disclosed $1.2 billion secured refinancing.
John DeSimone, Chief Financial Officer, confirmed the funding in a press release on Saturday.
This financing is anticipated to comprise a $400 million senior secured Term Loan B facility with a five-year term.
Furthermore, the Company plans to refinance with a $400 million, 4-year senior secured revolving credit facility, replacing its existing $330 million facility that matures in March 2025.
The Company anticipates repaying its 2018 Term Loan A, 2018 Term Loan B, revolving credit facility, and some of the 2025 Senior Notes with the proceeds from the refinancings.
“We are pleased that this transaction will allow us to remain focused on positioning Herbalife for continued growth and returning value to our shareholders,” said DeSimone.
According to the sources, the price conversation for its $700 million bond is for an all-in yield in the range of 12.5%, making it one of the highest yields for a bond issued this year.
The terms will be made public after the proposed refinancing transactions are finished.
Subject to customary closing requirements, the proposed refinancing transactions are anticipated to close on April 12, 2024.
There is no guarantee that any refinancings will go through smoothly or at all.
The Company offers science-backed products to consumers in more than 90 markets through entrepreneurial distributors who provide one-on-one coaching and a supportive community that inspires their customers to embrace a healthier, more active lifestyle to live their best lives.
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