Herbalife to sell $700 million five-year senior secured notes on Wednesday; early guidance 11% area

By Abigail W. Adams

Portland, Me., April 1 – Herbalife International Inc. and HLF Financing Sarl LLC plan to price $700 million in five-year senior secured notes (Ba2/B+) on Wednesday with early guidance for a yield in the 11% area.

The notes are non-callable for two years.

Citigroup Global Markets Inc. is lead left bookrunner for the Rule 144A and Regulation S for life offering.

Rabobank, BofA Securities Inc., Citizens Capital Markets Inc. and Mizuho Securities USA Inc. are also bookrunners.

There will be an investor call on Monday at 10 a.m. ET with pricing expected on Wednesday.

The notes carry an equity clawback of up to 40% and a 101 poison put.

Proceeds, together with proceeds from the concurrent $500 million senior secured term loan B and $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.

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