Merrill Lynch andMorgan Stanley are repricing Herbalife International of America's bank debt. The $225 million facility originally launched in November consists of a five-year, $25 million revolver priced at LIBOR plus 2% and a six-year, $200 million term loan. The term loan was priced at LIBOR plus 2 1/4% and will most likely be taken down to 1 3/4%. Pricing on the revolver is not expected to change.
The company, which offers a variety of weight loss and dietary supplements along with skin and hair care products, completed an initial public offering last December. Morgan Stanley and Merrill were the joint book runners on the IPO. Private equity funds Whitney & Co. and Golden Gate Capital bought Herbalife for $685 million in 2002 (LMW, 6/19/02). UBS led the loan for that purchase. William Lowe, cfo, declined comment.