UBS Cancels Herbalife Euro Bond, Upsizes “B” Loan

  • 25 Jun 2002
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UBS Warburg has done an about-face on Herbalife International by canceling a Euro 100 million bond sale after investors pushed for too high of a yield. Instead, the $165 million "B" term loan has been upsized to $180 million and the $150 million U.S. bond portion has been bulked up to $165 million.

Believing the high-yield market in Europe would be receptive, UBS downsized the "B" loan to $160 million and cancelled a $17 million mezzanine tranche at the holding company level to make room for the Euro offering (LMW, 6/19). However, bond investors recently have turned colder on new issues, bankers said. Pointing to the Buffet's bond deal, which was trimmed back by $30 million after investors demanded a steep yield, one banker said the bond market clearly has turned a bit.

The "B" loan was oversubscribed in syndication, so there will be no need to bring in new participants, a banker said, noting that pricing on the "B" remains at LIBOR plus 4%. Herbalife's new $25 million revolver will stay in place, and the $17 million of mezzanine debt has been revived and upsized to $25 million. The deal is expected to close in mid-July.

  • 25 Jun 2002

GlobalCapital European securitization league table

Rank Lead Manager/Arranger Total Volume $m No. of Deals Share % by Volume
1 Bank of America Merrill Lynch (BAML) 3,319 10 12.84
2 Citi 2,562 6 9.92
3 Goldman Sachs 2,150 3 8.32
4 Credit Suisse 1,822 6 7.05
5 Societe Generale 1,814 4 7.02

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 22 May 2017
1 Citi 41,255.30 117 12.99%
2 Bank of America Merrill Lynch 37,631.92 109 11.85%
3 Wells Fargo Securities 32,082.26 89 10.11%
4 JPMorgan 20,969.41 64 6.60%
5 Credit Suisse 16,754.47 44 5.28%