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Herbalife Subsidiary Contemplates Amendment to Existing Credit Facility

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By: TOM BRANNA

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Herbalife Ltd. announced that Herbalife International, Inc. is considering an amendment to its $225 million credit facility with a syndicate of financial institutions, with Morgan Stanley Senior Funding, Inc. as administrative agent. The amendment would allow the purchase, repurchase or redemption of up to $50,000,000 aggregate principal amount of Herbalife’s $275 million aggregate principal amount 9 1/2% Notes due 2011. The amendment would have to be approved by lenders holding at least 51 percent of the outstanding commitments in order to become effective. No assurances can be given that the contemplated credit facility amendment will be entered into or that any purchase, repurchase or redemption of any of Herbalife’s 9 1/2% Notes will be consummated even if the credit facility amendment is executed.

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