Herbalife sinks to 8-yr low on convertible debt deal plans

Herbalife

06/12/2022 15:19

** Shares of Herbalife Nutrition Ltd  HLF.N  down 19.2% at
$14.14, lowest since Jan 2015, as co looks to raise capital
    ** HLF shares on course for biggest one-day pct loss since
Sept 14, 2021
    ** Nutrition products firm late Mon announced $250 mln
convertible bonds (CBs) due 2028  urn:newsml:reuters.com:*:nBw75qqRSa
    ** Co intends to use net offering proceeds to repurchase
portion of its 2.625% CBs due 2024 from certain holders, rest
for general corp purposes
    ** 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
    ** With move on Tues, shares have lost 66% YTD, including
~33% drop since the end-Oct
    ** Co had $1.7 bln market cap through Mon close, 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))