By Paul A. Harris
Portland, Ore., April 5 – Herbalife International Inc. and HLF Financing Sarl LLC priced an upsized $800 million issue of 12¼% five-year senior secured notes (Ba2/B+) at 97.298 to yield 13% on Friday, according to market sources.
The issue size increased from $700 million.
The notes came wide to talk. Pricing climbed on a steep trajectory since the deal came into the market early in the week with early guidance in the 11% area.
Later in the week, with interest in the deal heard to be less than robust, official talk surfaced, specifying a coupon of 11¾% and a yield of 12½%, whereupon orders for the bonds built to $1 billion, sources say.
With the upsize of the notes the concurrent term loan downsized to $400 million from $500 million.
The notes and loan underwent covenant changes which primarily bear upon how the company may disburse cash and incur additional debt.
Citigroup Global Markets Inc. (left lead), Rabobank, BofA Securities Inc., Citizens Capital Markets Inc., and Mizuho Securities USA Inc. are the bookrunners.
Proceeds from the notes and loan, along with a $400 million senior secured revolving credit facility, will be used to refinance the company’s senior notes due 2025.
Herbalife is a Los Angeles-based nutrition and weight management company.
| Issuers: | HLF Financing SaRL, LLC and Herbalife International, Inc.
|
| Amount: | $800 million, increased from $700 million
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| Securities: | Senior secured notes
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| Maturity: | April 15, 2029
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| Bookrunners: | Citigroup Global Markets Inc. (left lead), Rabobank, BofA Securities Inc., Citizens Capital Markets Inc. and Mizuho Securities USA Inc.
|
| Coupon: | 12¼%
|
| Price: | 97.298
|
| Yield: | 13%
|
| Spread: | 864 bps
|
| First call: | April 15, 2026 at 106.125
|
| Trade date: | April 5
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| Settlement date: | April 12
|
| Ratings: | Moody’s: Ba2
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| S&P: B+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 11¾% at a discount to yield 12½%
|
| Marketing: | Roadshow
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