Item 1.01 Entry into a Material Definitive Agreement.
On May 20, 2021, HLF Financing SaRL, LLC ("HLF Financing") and Herbalife
International, Inc. ("HII" and together with HLF Financing, the "Issuers"), each
an indirect wholly-owned subsidiary of Herbalife Nutrition Ltd., a Cayman
Islands exempted company incorporated with limited liability (the "Company"),
issued $600 million aggregate principal amount of 4.875% Senior Notes due 2029
(the "Notes") to certain initial purchasers. The Notes were offered and sold in
the United States to persons reasonably believed to be qualified institutional
buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the
"Securities Act"), and outside the United States pursuant to Regulation S under
the Securities Act. The Notes are governed by an indenture, dated as of May 20,
2021, among the Issuers, the Company and certain subsidiaries of the Company
party thereto as guarantors and Citibank, N.A., as trustee (the "Indenture").
The Notes will bear interest at a rate of 4.875% per year payable semi-annually
in arrears in cash on June 1 and December 1 of each year, beginning on
December 1, 2021. The Notes will mature on June 1, 2029.
At any time prior to June 1, 2024, the Issuers may redeem all or part of the
Notes at a redemption price equal to 100% of their principal amount, plus a
"make whole" premium as of the redemption date, and accrued and unpaid interest
(subject to the rights of holders of record on the relevant record date to
receive interest due on the relevant interest payment date). In addition, at any
time prior to June 1, 2024, the Issuers may redeem up to 40% of the aggregate
principal amount of the Notes with the proceeds of one or more equity offerings,
at a redemption price equal to 104.875%, plus accrued and unpaid interest.
Furthermore, at any time on or after June 1, 2024, the Issuers may redeem all or
part of the Notes at the following redemption prices, expressed as percentages
of principal amount, plus accrued and unpaid interest thereon to the redemption
date, if redeemed during the twelve-month period beginning on June 1 of the
years indicated below:
Year Percentage
2024 102.438 %
2025 101.219 %
2026 and thereafter 100.000 %
The Indenture contains customary negative covenants, including, among other
things, limitations or prohibitions on restricted payments, incurrence of
additional indebtedness, liens, mergers, asset sales and transactions with
affiliates. In addition, the Indenture contains customary events of default.
The foregoing summary of the Indenture is not complete and is qualified in its
entirety by reference to the complete text of the Indenture, which includes the
form of the Note, a copy of which is filed as Exhibit 4.1 hereto and is
incorporated herein by reference.
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an
Off-Balance Sheet Arrangement of a Registrant.
The information set forth under "Item 1.01. Entry into a Material Definitive
Agreement" is incorporated herein by reference.
Item 8.01. Other Events.
On May 20, 2021, the Company issued a press release announcing the closing of
the offering of the Notes.
A copy of the press release is attached hereto as Exhibit 99.1 and incorporated
herein by reference.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
4.1 Indenture, dated as of May 20, 2021 among HLF Financing SaRL, LLC and
Herbalife International, Inc., the guarantors party thereto and Citibank,
N.A., as trustee.
4.2 Form of Global Note for 4.875% Senior Notes due 2029 (included as
Exhibit A to Exhibit 4.1 hereto).
99.1 Press Release issued by Herbalife Nutrition Ltd. on May 20, 2021.
104 Cover Page Interactive Data File - The cover page from the Company's
Current Report on Form 8-K filed on May 20, 2021 is formatted in Inline
XBRL (included as Exhibit 101).
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