Published on 8/9/2018 in the Prospect News High Yield Daily.
New Issue: Herbalife prices $400 million eight-year notes to yield 7¼%
By Paul A. Harris
Portland, Ore., Aug. 9 – Herbalife Nutrition Ltd. priced a $400 million offering of eight-year senior notes (B1/BB-) at par to yield 7¼% on Thursday, according to market sources.
The yield printed at the tight end of the 7¼% to 7½% yield talk and tighter than initial guidance in the mid-to-high 7% area.
Jefferies LLC was the left bookrunner. Rabo Securities, Citigroup Global Markets Inc., Citizens Bank, Fifth Third Bank and Mizuho Securities were the joint bookrunners.
The Los Angeles-based nutrition company plans to use the proceeds, along with new term loans A and B currently in the market, to refinance its existing credit facility.
| Issuer: | HLF Financing Sarl and HLF Financing US, LLC
|
| Amount: | $400 million
|
| Maturity: | Aug. 15, 2026
|
| Securities: | Senior notes
|
| Left bookrunner: | Jefferies LLC
|
| Joint bookrunners: | Rabo Securities USA Inc., Citigroup Global Markets Inc., Citizens Capital Markets Inc., Fifth Third Securities Inc., Mizuho Securities USA Inc.
|
| Co-managers: | Capital One Securities Inc., Comerica Securities, Inc.
|
| Coupon: | 7¼%
|
| Price: | Par
|
| Yield: | 7¼%
|
| Call protection: | Make-whole call at Treasuries plus 50 bps until Aug. 15, 2021, then at 103.625
|
| Equity clawback: | For up to 40% at 107.25 before Aug. 15, 2021
|
| Trade date: | Aug. 9
|
| Settlement date: | Aug. 16
|
| Ratings: | Moody’s: B1
|
| S&P: BB-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 7¼% to 7½%
|
| Marketing: | Roadshow
|
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