Herbalife Nutrition (NYSE:HLF) stock tumbled 10% after the bell on Monday as the firm announced a proposed $250M private offering of convertible senior notes due 2028 to qualified institutional buyers.
The company expects to grant initial purchasers of the notes an option to buy, for settlement within 13 days from, and including, the date of issue, up to an additional $37.5M of convertible notes.
Final terms of the convertible notes, including initial conversion price, interest rate and certain other terms, will be determined at the time of pricing.
The convertible notes will be senior, unsecured obligations of Herbalife (HLF) and are expected to pay interest semiannually.
The notes will mature on June 15, 2028, unless redeemed, repurchased or converted prior to such date.
Net proceeds will be used to repurchase a portion of Herbalife's (HLF) existing 2.625% convertible senior notes due 2024 and for general corporate purposes.
Shares of Herbalife (HLF) declined 22% in the last six months.