Herbalife increases revolver, term loan A and term loan B sizes

By Sara Rosenberg

New York, Aug. 8 – Herbalife Nutrition Ltd. upsized its revolving credit facility to $250 million from $200 million, its term loan A to $250 million from $200 million and its seven-year term loan B to $750 million from $600 million, according to a market source.

Also, pricing on the term loan B was reduced to Libor plus 325 basis points from talk in the Libor plus 375 bps to 400 bps range and the original issue discount was revised to 99.75 from 99.5, the source said.

As before, the term loan B has a 0% Libor floor and 101 soft call protection for six months.

Jefferies LLC and Rabobank are the lead arrangers on the now $1.25 billion of senior secured credit facilities, up from $1 billion.

Final commitments are due at 10 a.m. ET on Thursday, the source added.

Proceeds will be used to help refinance an existing credit facility and, because of the upsizings, to add cash to the balance sheet.

Other funds for the transaction will come from $400 million of senior notes.

Herbalife is a Los Angeles-based nutrition and weight management company.

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