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Herbalife Nutrition stock tumbles 10% after the bell on $250M convertible note offering

  • 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.