UBS Warburg's deal for Herbalife has reportedly filled up without a price flex or structural enhancements, according to bankers. Many in the market had doubts concerning the credit, citing a list of factors including the lack of security, a lack of Food and Drug Administration approval on some Herbalife products and the tiered sales structure whereby commission is collected by those who recruit others to sell the company products. But investors also liked the 1.4 times senior secured leverage and the company's cash flow, said a banker. UBS officials declined comment.
Herbalife Seen Flowing Over