Herbalife hits lowest since 2010 after convertible debt deal

Herbalife

07/12/2022 19:58

** Shares of Herbalife Nutrition Ltd  HLF.N  on Weds fall as
much as 7.8% to $12.04, lowest since Jul 2010, after capital
raise
    ** Nutritional supplements firm announced pricing of $250
mln 4.25% convertible bonds (CBs) due 2028  urn:newsml:reuters.com:*:nBwc1GTFNa
    ** Conversion price of $16.98 represents 30% premium to
stock's Tues close
    ** HLF shares on Tues plunged 25.4% for biggest pct drop on
record, per Refinitiv, after co launched offering to repurchase
portion of its existing 2.625% CBs due 2024 from certain holders
    ** On Oct 31, HLF named former long-time CEO Michael Johnson
new chief, replacing departing Dr. John Agwunobi, and withdrew
FY22 guidance, citing "rapidly shifting macroeconomic sentiment
and backdrop"  urn:newsml:reuters.com:*:nBw5mCp7xa
    ** HLF shares last down 4.7% at $12.44 on the session,
extending YTD loss to ~70%
    ** As of last close, co had ~$1.3 bln market cap, per
Refinitiv
 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-332-219-1430))