Herbalife driving by with $500 million eight-year senior notes; initial talk 5% area

By Paul A. Harris

Portland, Ore., May 6 – Herbalife International, Inc. and co-issuer HLF Financing Sarl, LLC plan to price a $500 million offering of eight-year senior notes (expected ratings B1/BB-) in a Thursday drive-by following a conference call with investors, according to market sources.

Initial guidance has the notes coming to yield in the 5% area, a trader said.

Citigroup Global Markets Inc. is the lead bookrunner. BBVA Securities Inc., BofA Securities Inc., Citizens Capital Markets Inc., Fifth Third Securities Inc., Mizuho Securities USA Inc. and Jefferies LLC are the joint bookrunners.

Comerica Securities Inc. and Standard Chartered Bank are the co-managers.

The Rule 144A and Regulation S for life notes become callable after three years at par plus 50% of the coupon. They feature a 40% equity clawback at par plus the full coupon during the non-call period and have a 101% poison put.

The Los Angeles-based nutrition and weight management company plans to use the proceeds to redeem its 7¼% senior notes due 2026 and for general corporate purposes.

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