Herbalife Ltd. announced a $1.55 billion senior secured debt refinancing that will include a $425 million revolving credit facility, a $125 million Term Loan A, a $500 million Term Loan B, and $500 million of other secured debt, extending the maturity profile of the company’s senior secured debt.
The refinancing replaces the existing Term Loan B that matures in April 2029 and had $370 million outstanding as of December 31, 2025, improving liquidity and reducing interest expense as part of the company’s deleveraging program.
The move follows a 2.8× leverage ratio in Q3 2025, below the 3× target, and aligns with Herbalife’s broader platform transformation strategy, including investment in the Pro2col digital platform and a $7.5 million investment from Cristiano Ronaldo that gives him a 10% equity stake.
The refinancing is part of a series of capital‑structure optimizations, including a March 2024 refinancing of the 2018 Term Loan B and a $1.2 billion secured refinancing completed in April 2024. The new package will provide additional financial flexibility for growth initiatives and support the company’s goal of reducing total debt to $1.4 billion by 2028.
S&P Global Ratings upgraded Herbalife’s issuer credit rating to B+ from B in March 2025, citing the company’s deleveraging progress. The new debt structure is expected to maintain or improve the credit profile while delivering cost savings through lower interest rates and extended maturities.
The refinancing is subject to customary closing conditions and will be disclosed in detail upon completion. The transaction signals management’s continued focus on strengthening the balance sheet and supporting long‑term strategic objectives.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.