Herbalife Completes \$1.45 Billion Senior Secured Refinancing, Unlocks \$45 Million in Annual Interest Savings

Key Points and Investor Highlights

• Herbalife Ltd. (NYSE: HLF) has successfully completed a major refinancing transaction totaling \$1.45 billion, amid significant market volatility.
• The refinancing includes a private offering of \$800 million in 7.750% senior secured notes due May 2033 and amendments to its previous senior secured credit facility, now replaced by a new 2026 Credit Facility.
• The 2026 Credit Facility comprises a \$225 million senior secured Term Loan A and a \$425 million senior secured revolving credit facility, both maturing in April 2031.
• The strategic refinancing is projected to deliver approximately \$45 million in annual cash interest savings.
• Herbalife has extended its debt maturity profile and improved its capital structure, which is expected to provide additional financial flexibility moving forward.
• The transaction resulted in the full repayment of the \$365 million principal balance on its 2024 Term Loan B and the full redemption of the \$800 million principal balance of its 12.250% senior secured notes due 2029, which were redeemed at 106.125% of principal (including call premium).
• As of April 29, 2026, approximately \$200 million remained outstanding under the new revolving facility.

Detailed Transaction Overview

Herbalife’s refinancing involved multiple components:

• 2033 Secured Notes: Issued at par, non-callable for three years, fixed interest rate of 7.750%, paid semi-annually starting November 1, 2026.
• 2026 Term Loan A: Issued at par, requires quarterly payments equal to 5% of the aggregate principal per annum, starting Q3 2026. Bears interest at SOFR plus 3.00% initially, fluctuating between SOFR plus 2.50% and 3.25% depending on leverage ratio.
• 2026 Revolving Credit Facility: Bears interest at SOFR plus 3.00% initially, with interest rate subject to leverage ratio adjustments.

The new credit facilities require Herbalife to maintain:

• Maximum total leverage ratio: 4.0x
• Maximum first lien net leverage ratio: 2.5x
• Minimum fixed charge coverage ratio: 2.0x

Both the 2033 Secured Notes and the 2026 Credit Facility are guaranteed on a senior secured basis by Herbalife and certain domestic and foreign subsidiaries.

Implications for Shareholders and Potential Price Sensitivity

• \$45 Million Annual Interest Savings: This is a substantial improvement in cost structure and will likely have a positive impact on Herbalife’s future cash flows and profitability, which is a key metric for investors.
• Extended Debt Maturities: Reduces near-term refinancing risk and strengthens balance sheet stability.
• Redemption of High-Interest Debt: Fully repaid and redeemed expensive debt (12.250% notes), further enhancing financial health.
• Improved Financial Flexibility: Enables Herbalife to pursue growth, strategic initiatives, and withstand economic volatility.
• Potential for Share Price Movement: Investors should be aware that these changes could positively affect share valuation due to improved earnings outlook and reduced risk profile.

Risks and Forward-Looking Statements

Herbalife has cautioned investors about several risk factors that could impact the company’s results and share price, including:

• Global economic conditions (inflation, FX rates, tariffs)
• Ability to attract and retain members/distributors
• Compliance with laws and regulations in multiple jurisdictions
• Adverse publicity or regulatory action in the direct-selling industry
• Changing consumer preferences and demands, especially regarding ESG matters
• Legal and regulatory risks including the FTC Consent Order
• Risks associated with operations in China and other international markets
• Execution of strategic initiatives and adoption of technology-driven programs
• Cybersecurity, data privacy, and IT infrastructure risks
• Risks related to supply chain disruptions, natural disasters, geopolitical events, and pandemics
• Reliance on senior management and risk of departures
• Restrictions from debt covenants and risks related to convertible notes
• Tax law changes and uncertainties
• Volatility in share price due to speculative trading

Company Overview

Herbalife is a leading health and wellness company operating in over 90 markets, offering science-backed nutrition products through a network of independent distributors. The company emphasizes a supportive community and healthy lifestyle solutions.

Contacts

Media Contact: Miguel Lopez-Najera, Director, Global Corporate Communications ([email protected])
Investor Contact: Erin Banyas, Vice President, Head of Investor Relations ([email protected])

Disclaimer

This article contains forward-looking statements as defined by U.S. securities laws, which are subject to risks and uncertainties. Actual results may differ materially from those indicated. Investors are advised to review Herbalife’s filings with the SEC for further information on risks and uncertainties. The information provided is for informational purposes only and should not be construed as investment advice. Herbalife does not undertake any obligation to update forward-looking statements or report events after the date of this release except as required by law.

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