Herbalife sets $400 million revolver initial rate at SOFR plus 625 bps

By Wendy Van Sickle

Columbus, Ohio, April 12 – Herbalife Ltd. (HLF Financing Sarl LLC) gave details of its previously announced amended $400 million revolving credit facility in a news release on Friday.

The amended revolver will initially bear interest at SOFR plus 625 basis points, and the margin will fluctuate from 550 bps to 650 bps, based on the company’s total leverage ratio.

The amended revolver requires the company to maintain a maximum total leverage ratio of 4.5x through Dec. 31, stepping down to 4.25x on March 31, 2025 and Sept. 30, 2025.

The financial covenants also include a maximum first-lien net leverage ratio of 2.5x, a minimum fixed-charge coverage ratio of 2x and a minimum liquidity coverage of $200 million of revolver availability and accessible cash.

As previously reported, the company also obtained a $400 million senior secured five-year covenant-lite term loan B and priced $800 million of secured notes, upsized from $700 million, to refinance an existing term loan B due August 2025 with an outstanding balance of $650.6 million as of Dec. 31, to refinance an existing term loan A and revolver and to repay $300 million of its $600 million of 7 7/8% senior notes due 2025.

Herbalife is a Los Angeles-based health and wellness company.

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