Herbalife planning euro bond issue

- Last updated on GMT

Related tags: Euro

Herbalife International is planning to launch a high-yield bond
with a euro denominated tranche in June, sources close to the deal
said on Wednesday.

Herbalife International is planning to launch a high-yield bond with a euro denominated tranche in June, sources close to the deal said on Wednesday.

The maker of vitamin and weight loss products is to issue a $220 million (€238m) equivalent eight-year bond via UBS Warburg with the size of the euro tranche to be decided by investor demand, the source said.

Proceeds from the deal will provide acquisition financing after Herbalife agreed in early April to be bought by two private equity firms - Whitney & Co. and Golden Gate Capital - for $685 million.

Herbalife, which markets its products through a network of distributors in 54 countries, has been forced to battle against an extensive list of woes lately.

Its founder Mark Hughes died in 2000 and it has been fighting a slump in the vitamin and supplements business, difficulty with its direct sales model and a downturn in the US market.

The new bond is expected to price on either 20 or 21 June following investor presentations in Europe and the US. European roadshows will take place through the week commencing 27 May and continue in the US, following a week's break, on 11 June.

General expectations are that the bond will be given a single-B rating, although confirmation is not expected until a later date, the source said.

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