Herbalife Completes $1.6 Billion Secured Refinancing to Strengthen Balance Sheet
By Sabela Ojea
Herbalife said it is strengthening its balance sheet following the completion of a $1.6 billion secured refinancing.
The weight management and health and nutrition company on Friday said that it secured $800 million of senior notes due in April 2029, and entered into a $400 million secured term loan facility maturing in five years and another $400 million revolving facility due in four years.
The company will use the proceeds to repay all amounts outstanding under its 2018 Term Loan A, 2018 Term Loan B and 2018 revolving credit facility, to redeem $300 million of the $600 million of its senior notes due 2025, and to pay related fees and expenses.
The completion of the refinancing moves Herbalife further along on its path to reduce its total leverage ratio by the end of 2025 and strengthen its balance sheet, finance chief John DeSimone said.
On February 2, the company initiated the refinancing of its 2018 term loan A and 2018 revolving credit facility, both of which are maturing in March 2025. As of December 31, $236.1 million was outstanding under the term loan A and the revolver remained undrawn.
Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix
(END) Dow Jones Newswires
April 12, 2024 17:10 ET (21:10 GMT)
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