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) 6,665 23 13.02
2 Citi 5,781 17 11.29
3 BNP Paribas 3,530 14 6.89
4 Barclays 2,853 9 5.57
5 Credit Suisse 2,783 8 5.44

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
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1 Citi 99,250.27 279 13.13%
2 Bank of America Merrill Lynch 91,648.43 266 12.13%
3 Wells Fargo Securities 72,661.39 222 9.61%
4 JPMorgan 52,367.24 169 6.93%
5 Credit Suisse 41,885.89 127 5.54%