Herbalife Initiates Process to Refinance 2018 Term Loan B
March 22 2024 - 7:05AM
Business Wire
Herbalife Ltd. (NYSE: HLF), a premier health and wellness
company, community and platform, today announced the initiation of
a refinancing process for its 2018 Term Loan B, which matures in
August 2025. As of December 31, 2023, $650.6 million was
outstanding under the Term Loan B. The previously announced
refinancing of the Company’s 2018 Term Loan A and 2018 Revolving
Credit Facility is ongoing.
Overall, the Company is targeting $1.2 billion of secured
financing and a $400 million revolving credit facility to repay the
Term Loan A, Term Loan B and revolving credit facility, as well as
a portion of the 2025 Senior Notes.
On March 15, 2024, and consistent with its capital allocation
priorities, the Company repaid in full the outstanding principal
and accrued interest on the 2024 Convertible Notes with a
combination of $108.6 million in cash and $91.0 million in
borrowings under its revolving credit facility.
The terms of the proposed refinancing transactions will be
disclosed upon completion of the transactions. The proposed
refinancings will be subject to customary closing conditions and
there can be no assurance that any of the refinancings will occur
successfully, or at all.
About Herbalife Ltd.
Herbalife (NYSE: HLF) is a premier health and wellness company,
community and platform that has been changing people's lives with
great nutrition products and a business opportunity for its
independent distributors since 1980. 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
life.
For more information, visit https://ir.herbalife.com.
Forward-Looking Statements
This release contains “forward-looking statements” within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended.
All statements other than statements of historical fact are
“forward-looking statements” for purposes of federal and state
securities laws, including any projections of earnings, revenue or
other financial items; any statements of the plans, strategies and
objectives of management, including for future operations, capital
expenditures, or share repurchases; any statements concerning
proposed new products, services, or developments; any statements
regarding future economic conditions or performance; any statements
of belief or expectation; and any statements of assumptions
underlying any of the foregoing or other future events.
Forward-looking statements may include, among others, the words
“may,” “will,” “estimate,” “intend,” “continue,” “believe,”
“expect,” “anticipate” or any other similar words.
Although we believe that the expectations reflected in any of
our forward-looking statements are reasonable, actual results or
outcomes could differ materially from those projected or assumed in
any of our forward-looking statements. Our future financial
condition and results of operations, as well as any forward-looking
statements, are subject to change and to inherent risks and
uncertainties, many of which are beyond our control. Important
factors that could cause our actual results, performance and
achievements, or industry results to differ materially from
estimates or projections contained in or implied by our
forward-looking statements include the following:
- the potential impacts of current global economic conditions,
including inflation, on us; our Members, customers, and supply
chain; and the world economy;
- our ability to attract and retain Members;
- our relationship with, and our ability to influence the actions
of, our Members;
- our noncompliance with, or improper action by our employees or
Members in violation of, applicable U.S. and foreign laws, rules,
and regulations;
- adverse publicity associated with our Company or the
direct-selling industry, including our ability to comfort the
marketplace and regulators regarding our compliance with applicable
laws;
- changing consumer preferences and demands and evolving industry
standards, including with respect to climate change,
sustainability, and other environmental, social, and governance, or
ESG, matters;
- the competitive nature of our business and industry;
- legal and regulatory matters, including regulatory actions
concerning, or legal challenges to, our products or network
marketing program and product liability claims;
- the Consent Order entered into with the FTC, the effects
thereof and any failure to comply therewith;
- risks associated with operating internationally and in
China;
- our ability to execute our growth and other strategic
initiatives, including implementation of our Transformation Program
and increased penetration of our existing markets;
- any material disruption to our business caused by natural
disasters, other catastrophic events, acts of war or terrorism,
including the war in Ukraine, cybersecurity incidents, pandemics,
and/or other acts by third parties;
- our ability to adequately source ingredients, packaging
materials, and other raw materials and manufacture and distribute
our products;
- our reliance on our information technology infrastructure;
- noncompliance by us or our Members with any privacy laws,
rules, or regulations or any security breach involving the
misappropriation, loss, or other unauthorized use or disclosure of
confidential information;
- contractual limitations on our ability to expand or change our
direct-selling business model;
- the sufficiency of our trademarks and other intellectual
property;
- product concentration;
- our reliance upon, or the loss or departure of any member of,
our senior management team;
- restrictions imposed by covenants in the agreements governing
our indebtedness;
- risks related to our convertible notes;
- changes in, and uncertainties relating to, the application of
transfer pricing, income tax, customs duties, value added taxes,
and other tax laws, treaties, and regulations, or their
interpretation;
- our incorporation under the laws of the Cayman Islands;
and
- share price volatility related to, among other things,
speculative trading and certain traders shorting our common
shares.
Additional factors and uncertainties that could cause actual
results or outcomes to differ materially from our forward-looking
statements are set forth in the Company's Annual Report on Form
10-K for the fiscal year ended December 31, 2023, filed with the
Securities and Exchange Commission on February 14, 2024, including
under the headings “Risk Factors” and “Management’s Discussion and
Analysis of Financial Condition and Results of Operations” and in
our Consolidated Financial Statements and the related Notes
included therein. In addition, historical, current, and
forward-looking sustainability-related statements may be based on
standards for measuring progress that are still developing,
internal controls and processes that continue to evolve, and
assumptions that are subject to change in the future.
Forward-looking statements made in this release speak only as of
the date hereof. We do not undertake any obligation to update or
release any revisions to any forward-looking statement or to report
any events or circumstances after the date hereof or to reflect the
occurrence of unanticipated events, except as required by law.
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version on businesswire.com: https://www.businesswire.com/news/home/20240321093365/en/
Media Contact: Thien Ho Vice President, Global Corporate
Communications thienh@herbalife.com
Investor Contact: Erin Banyas Vice President, Head of
Investor Relations erinba@herbalife.com
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