Loan & DebtMay 1, 2026, 05:01 PM
Herbalife Completes $1.45B Refinancing; Expects $45M Annual Savings
AI Summary
Herbalife completed a $1.45 billion senior secured refinancing, issuing $800 million of 7.750% senior secured notes due 2033 and amending its credit facility. The refinancing includes a new $225 million Term Loan A and a $425 million revolving credit facility, both maturing in April 2031. Proceeds were used to repay $365 million of Term Loan B and redeem $800 million of 12.250% senior secured notes due 2029, with the company expecting approximately $45 million in annual cash interest savings.
Key Highlights
- Completed $1.45 billion senior secured refinancing.
- Issued $800 million of 7.750% Senior Secured Notes due May 2033.
- Amended credit facility includes $225 million Term Loan A and $425 million revolving credit facility, maturing April 2031.
- Repaid $365 million outstanding 2024 Term Loan B.
- Redeemed $800 million of 12.250% senior secured notes due 2029 at 106.125% of principal.
- Expects approximately $45 million in annual cash interest savings.
- New Term Loan A and Revolving Credit Facility initially bear interest at SOFR plus 3.00%.
- Requires maximum total leverage ratio of 4.0x and minimum fixed charge coverage ratio of 2.0x.