By Paul A. Harris
St. Louis, Mo., June 21 - Herbalife International, Inc. upsized to $165 million from $150 million the dollar portion of its senior subordinated notes due July 15, 2010 on Friday, according to an informed source.
The notes priced at 98.716 to yield 12%. Price talk was 11%-11¼%.
However the company postponed a €100 million identically structured tranche, the source said, adding it found the interest rate to be too high on the euro piece and that accounts that had intended to play the euro tranche were rolled into the upsized dollar piece.
UBS Warburg was the bookrunner.
Proceeds from the Rule 144A notes will be used to fund the acquisition of Herbalife by Whitney & Co. and Golden Gate Capital.
The issuer is a Los Angeles-based maker of personal care products.
Issuer: Herbalife International, Inc.
Amount: $165 million (increased from $150 million)
Maturity: July 15, 2010
Type: Senior subordinated notes
Bookrunner: UBS Warburg
Coupon: 11¾%
Price: 98.716
Yield: 12%
Price talk: 11%-11¼%
Spread: 736 basis points over 5¾% Treasury due 2010
Call features: Callable on July 15, 2006 at 105.875, 102.938, par on July 15, 2008 and thereafter
Equity clawback: Until July 15, 2005 for 35% at 111.75
Settlement date: June 27, 2002 (T+4)
Ratings: Moody's: B3
| Standard & Poor's: B
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| Rule 144A CUSIP: | 426908AA7
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