UBS Warburg is ready to launch syndication of the credit backing the leveraged buyout of Herbalife by private equity firms Whitney & Co. and Golden Gate Capital for $685 million. The senior secured bank debt will be in the region of $190 million, comprising a $165 million "B" loan and a $25 million revolver, said one buysider. This will leave senior leverage at a conservative 1.4/1.5 times, based on last year's EBITDA figure of $120 million, he noted. Total leverage will be closer to 3.5 times total, as a $220 million senior subordinated note offering is also planned, he added.
Herbalife officials based in Los Angeles could not be reached for comment as LMW went to press Friday morning.