S&P revises Herbalife view to positive, rates loan BB

S&P said it affirmed its B+ issuer credit rating on Herbalife Nutrition Ltd. and revised its outlook to positive from stable.

At the same time, S&P said it assigned a BB issue level rating to the $600 million seven-year senior secured term loan B tranche of Herbalife's subsidiary, HLF Financing Sarl's, proposed $1 billion senior secured credit facility, which also includes an unrated $200 million revolving credit facility and unrated $200 million term loan A facility.

The recovery rating on the term loan B facility is 1, indicating that lenders could expect very high (90% to 100%; rounded estimate: 95%) recovery in the event of a payment default.

“Our outlook revision to positive from stable reflects Herbalife's launch of a roughly leverage-neutral transaction that will refinance about half of its debt capital structure,” S&P said in a news release.

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