Herbalife Nutrition Completes Term Loan B Repricing; Reduces Borrowing Costs
12 Dezember 2019 - 10:58PM
Business Wire
Herbalife Nutrition (NYSE: HLF), a premier global nutrition
company, announced an amendment to its existing credit agreement
that reduces the interest rate applicable to its $743 million term
loan B facility ("Term Loan B"). The interest rate applicable to
the Term Loan B as a result of the amendment is LIBOR plus 2.75%, a
reduction of 0.50% from the previous interest rate of LIBOR plus
3.25%. Excluding the costs of the transaction and future principal
payments, the lower interest rate will save the Company
approximately $20 million in interest costs through the maturity of
the Term Loan B.
"The favorable credit market and Herbalife Nutrition’s improved
credit profile have enabled us to reduce our cost of debt.
Continuing to improve our capital structure remains a key focus as
part of our overall strategy to deliver value to our shareholders,"
said Bosco Chiu, chief financial officer, Herbalife Nutrition.
The maturity date for the Term Loan B remains August 18, 2025
and no changes were made to the financial covenants or scheduled
amortization.
About Herbalife Nutrition Ltd.
Herbalife Nutrition is a global company that has been changing
people's lives with great nutrition products and a proven business
opportunity for its independent distributors since 1980. The
Company offers high-quality, science-backed products, sold in over
90 countries by entrepreneurial distributors who provide one-on-one
coaching and a supportive community that inspires their customers
to embrace a healthier, more active lifestyle. Through the
Company’s global campaign to eradicate hunger, Herbalife Nutrition
is also committed to bringing nutrition and education to
communities around the world.
For more information, please visit
IAmHerbalifeNutrition.com.
The company also encourages investors to visit its investor
relations website at ir.herbalife.com as financial and other
information is updated and new information is posted.
Forward Looking Statements
This release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995
("PSLRA"). All such statements in this release, other than
statements of historical fact, could be deemed forward-looking
statements and as such are intended to be covered by the safe
harbor for "forward-looking statements" provided by the PSLRA.
Without limiting the foregoing, statements including the words
"expect," "intend," "will," "plan," "anticipate," "believe," "we
are confident that," "forecast," "guidance," "outlook," "goals,"
and similar expressions are intended to identify forward-looking
statements.
These forward-looking statements could include but are not
limited to statements related to our expectations generally
regarding our market positioning, future business performance and
capabilities and financial results. Our actual results and other
events could differ materially from any forward-looking statements
due to numerous factors that involve substantial known and unknown
risks and uncertainties. These risks and uncertainties include,
among other things:
- our relationship with, and our ability to influence the actions
of, our Members;
- improper action by our employees or Members in violation of
applicable law;
- adverse publicity associated with our products or network
marketing organization, including our ability to comfort the
marketplace and regulators regarding our compliance with applicable
laws;
- changing consumer preferences and demands;
- the competitive nature of our business;
- regulatory matters governing our products, including potential
governmental or regulatory actions concerning the safety or
efficacy of our products and network marketing program, including
the direct selling markets in which we operate;
- legal challenges to our network marketing program;
- the Consent Order entered into with the FTC, the effects
thereof and any failure to comply therewith;
- risks associated with operating internationally and the effect
of economic factors, including foreign exchange, inflation,
disruptions or conflicts with our third-party importers, pricing
and currency devaluation risks, especially in countries such as
Venezuela;
- uncertainties relating to interpretation and enforcement of
legislation in China governing direct selling and
anti-pyramiding;
- our inability to obtain or maintain the necessary licenses for
our direct selling business in China and elsewhere;
- adverse changes in the Chinese economy;
- our dependence on increased penetration of existing
markets;
- any material disruption to our business caused by natural
disasters, other catastrophic events, acts of war or terrorism, or
cybersecurity incidents;
- noncompliance by us or our Members with any privacy laws or any
security breach by us or a third party involving the
misappropriation, loss, or other unauthorized use or disclosure of
confidential information;
- contractual limitations on our ability to expand our
business;
- our reliance on our information technology infrastructure and
outside manufacturers;
- the sufficiency of our trademarks and other intellectual
property rights;
- product concentration;
- our reliance upon, or the loss or departure of any member of,
our senior management team which could negatively impact our Member
relations and operating results;
- U.S. and foreign laws and regulations applicable to our
operations;
- uncertainties relating to the United Kingdom’s vote to exit
from the European Union;
- restrictions imposed by covenants in our existing
indebtedness;
- risks related to the convertible notes;
- uncertainties relating to the application of transfer pricing,
duties, value added taxes, and other tax regulations, and changes
thereto;
- changes in tax laws, treaties or regulations, or their
interpretation;
- taxation relating to our Members;
- product liability claims;
- our incorporation under the laws of the Cayman Islands;
- whether we will purchase any of our shares in the open markets
or otherwise; and
- share price volatility related to, among other things,
speculative trading and certain traders shorting our common
shares.
The forward-looking statements should be considered in light of
these risks and uncertainties. All forward-looking statements in
this release are based solely on information available to us on the
date of this release, and we undertake no obligation and do not
intend to update these forward-looking statements
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