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) 7,026 25 11.95
2 Citi 6,449 21 10.96
3 BNP Paribas 5,093 18 8.66
4 Barclays 4,040 11 6.87
5 Lloyds Bank 3,615 14 6.15

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
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1 Citi 1,712.34 6 12.44%
2 SG Corporate & Investment Banking 1,292.64 1 9.39%
2 Rabobank 1,292.64 1 9.39%
4 Mizuho 1,215.54 3 8.83%
5 Wells Fargo Securities 1,012.71 4 7.36%