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Herbalife exercises clawback for 40% of 9½% notes, receives tenders of 99.9% of 11¾% notes
New York, Dec. 21 - Herbalife Ltd. said it will redeem $110 million or 40% of its 9½% notes under the equity clawback provision.
The notes will be redeemed at 109.5% of par plus accrued interest on Feb. 4.
Herbalife also said it completed its tender offer for its 11¾% series B senior subordinated notes due 2010, buying $159.8 million or 99.9% of the $160 million of notes.
The Los Angeles marketer of weight loss products, formerly known as WH Holdings (Cayman Islands) Ltd., also announced it raised $172.6 million proceeds from its recent initial public offering, excluding possible exercise of the greenshoe, and closed on a $225 million credit facility.
As previously announced, the company will pay $1,234.46 per $1,000 principal amount in its tender offer for the 11¾% notes including a $40 consent payment to holders who tendered before the consent deadline. Holders who tender after will receive $1,194.46 per $1,000 principal amount.
In its previous announcement on Nov. 24, Herbalife said it received the necessary consents to amend its $160 million 11¾% notes.
By the consent deadline of 5 p.m. ET on Nov. 24, the company had received consents from holders of 99.1% of the notes.
The consent solicitation is to eliminate substantially all of the restrictive covenants and certain events of default. The company has executed a supplementary indenture but it will not become operative until the tender offer is completed.
The tender expired at midnight ET on Dec. 20.
Holders who tender after the consent date will not receive the consent payment of $40 per $1,000 principal amount.
Morgan Stanley (800 624-1808 or collect at 212 761-1457, attention: Riccardo Cumerlato) and Merrill Lynch & Co. (888 ML4-TNDR or collect at 212 449-4914) are dealer managers. MacKenzie Partners Inc. is the information agent (212 929-5500).
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