Herbalife Ltd. (NYSE: HLF) today announced it entered into an amendment
relating to its $500 million senior term loan and $700 million senior
revolving loan credit facility, which will become effective upon, among
other conditions, the consummation of the issuance of the company’s 2%
Senior Convertible Notes due 2019, the pricing of which the company
announced today. Pursuant to this amendment, Herbalife will amend the
terms of its credit facility to provide for technical amendments to the
indebtedness, asset sale and dividend covenants and the cross-default
event of default to accommodate the issuance of the convertible notes
and the capped call option entered into in connection therewith. The
amendment will also increase by 0.50% the highest applicable margin
payable by Herbalife in the event that Herbalife’s consolidated total
leverage ratio exceeds 2.50 to 1.00 and increase the permitted
consolidated total leverage ratio of Herbalife under the credit facility.
About Herbalife Ltd.
Herbalife Ltd. (NYSE:HLF) is a global nutrition company that sells
weight-management, nutrition, and personal care products intended to
support a healthy lifestyle. Herbalife products are sold in over 90
countries through and to a network of independent distributors. The
Company supports the Herbalife Family Foundation and its Casa Herbalife
program to help bring good nutrition to children. Herbalife's website
contains a significant amount of financial and other information
about Herbalife, for investors at http://ir.Herbalife.com.
The company encourages investors to visit its website from time to time,
as information is updated and new information is posted.
FORWARD-LOOKING STATEMENTS
Although we believe that the expectations reflected in any of our
forward-looking statements are reasonable, actual results could differ
materially from those projected or assumed in any of our forward-looking
statements. Our future financial condition and results of operations, as
well as any forward-looking statements, are subject to change and to
inherent risks and uncertainties, such as those disclosed or
incorporated by reference in our filings with the Securities and
Exchange Commission. Important factors that could cause our actual
results, performance and achievements, or industry results to differ
materially from estimates or projections contained in our
forward-looking statements include, among others, the following:
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any collateral impact resulting from the ongoing worldwide financial
environment, including the availability of liquidity to us, our
customers and our suppliers or the willingness of our customers to
purchase products in a difficult economic environment;
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our relationship with, and our ability to influence the actions of,
our distributors;
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improper action by our employees or distributors in violation of
applicable law;
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adverse publicity associated with our products or network marketing
organization, including our ability to comfort the marketplace,
regulators and other third parties regarding our compliance with
applicable laws;
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changing consumer preferences and demands;
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our reliance upon, or the loss or departure of any member of, our
senior management team which could negatively impact our distributor
relations and operating results;
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the competitive nature of our business;
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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 market in which we operate;
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legal challenges to our network marketing program;
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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;
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uncertainties relating to the application of transfer pricing, duties,
value added taxes, and other tax regulations, and changes thereto;
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uncertainties relating to interpretation and enforcement of
legislation in China governing direct selling;
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uncertainties relating to the interpretation, enforcement or amendment
of legislation in India governing direct selling;
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our inability to obtain the necessary licenses to expand our direct
selling business in China;
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adverse changes in the Chinese economy, Chinese legal system or
Chinese governmental policies;
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our dependence on increased penetration of existing markets;
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contractual limitations on our ability to expand our business;
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our reliance on our information technology infrastructure and outside
manufacturers;
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the sufficiency of trademarks and other intellectual property rights;
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product concentration;
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changes in tax laws, treaties or regulations, or their interpretation;
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taxation relating to our distributors;
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product liability claims;
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whether we will purchase any of our shares in the open markets or
otherwise; and
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share price volatility related to, among other things, speculative
trading and certain traders shorting our common shares.
We do not undertake any obligation to update or release any revisions
to any forward-looking statement or to report any events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events, except as required by law.
Copyright Business Wire 2014