EXHIBIT 99.1
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Media Contact:
Barbara Henderson
SVP, Worldwide Corp. Comm.
(310) 410-9600 ext. 32736
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Investor Contact:
Frank Lamberti
VP, Investor Relations and Financial
Planning
(310) 410-9600 ext. 32280 |
HERBALIFE LTD. COMPLETES BANK REFINANCING
Company Announces Notice to Redeem its 9 1/2% Notes due 2011
LOS ANGELES, July 21, 2006 — Herbalife Ltd. (NYSE: HLF), formerly known as WH Holdings (Cayman
Islands) Ltd., and its indirect subsidiary Herbalife International, Inc. (together, “Herbalife” or
the “Company”) announced today the completion of its previously announced refinancing of its
existing $225.0 million senior secured credit facility. The new $300.0 million
senior secured credit facility consists of a $200.0 million, seven-year term loan and a $100.0
million, six-year revolving credit facility. Merrill Lynch, Pierce, Fenner & Smith Inc., J.P.
Morgan Securities Inc. and Morgan Stanley served as joint lead arrangers and joint book-runners on
the transaction.
At closing, the Company used approximately $65.0 million of available cash and $15.0 million of
borrowings under the new revolver to repay the outstanding borrowings under its existing senior
credit facility and fund closing costs.
The Company also announced today it has advised the Trustee of its 9 1/2% Notes due 2011 (the
“Notes”), of the Company’s election to redeem the outstanding $165.0 million aggregate principal
amount of Notes at the mandatory redemption price of approximately $109.80 per $100.00 aggregate
principal amount of Notes. The Company intends to use the proceeds from the new $200.0 million term
loan to fund the redemption and pay accrued interest. The anticipated redemption date is August 23,
2006.
“We continue to proactively de-leverage the company reflecting the strong cash flow generation of
our business coupled with the creation of a more flexible and efficient capital structure,” said
Rich Goudis, the company’s chief financial officer. “The result has been a reduction of debt, a
lower effective interest rate and improved coverage ratios which led to the recent corporate family
credit rating upgrades from both Moody’s and S&P to Ba1 and BB+, respectively. The benefits from
this recapitalization will allow us to invest further in the needs of our distributors, our
business and our shareholders,” Goudis continued.
Upon redemption of the Notes, the Company expects to incur an after-tax one-time charge of
approximately $14.0 million, representing the call premium and the write-off of unamortized
deferred financing costs.
About Herbalife Ltd.
Herbalife is a global network marketing company that sells weight-management, nutritional
supplements and personal care products intended to support a healthy lifestyle. Herbalife products
are sold in 62 countries through a network of more than one million independent distributors. The
company supports the Herbalife Family Foundation and its Casa Herbalife program to bring good
nutrition to children. Please visit Herbalife Investor Relations for additional financial information. (HLFE)
Disclosure Regarding Forward-Looking Statements
Except for historical information contained herein, the matters set forth in this press release are
“forward-looking statements.” All statements other than statements of historical fact are
“forward-looking statements” for purposes of federal and state securities laws, including any
projections of earnings, revenue or other financial items; any statements of the plans, strategies
and objectives of management for future operations; any statements concerning proposed new services
or developments; any statements regarding future economic conditions or performance; any statements
of belief; and any statements of assumptions underlying any of the foregoing. Forward-looking
statements may include the words, “may,” “will,” “estimate,” “intend,” “continue,” “believe,”
“expect,” or “anticipate” and any other similar words.
Although we believe that the expectations reflected in any of our forward-looking statements are
reasonable, actual results could differ materially from those projected or assumed in any of our
forward-looking statements. Our future financial condition and results of operations, as well as
any forward-looking statements, are subject to change and to inherent risks and uncertainties, such
as those disclosed in this press release. Important factors that could cause our actual results,
performance and achievements, or industry results to differ materially from estimates or
projections contained in forward-looking statements include, among others, the following:
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our relationships with, and our ability to influence the actions of, our distributors; |
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adverse publicity associated with our products or network marketing organization; |
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uncertainties relating to interpretation and enforcement of recently enacted
legislation in China governing direct selling; |
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adverse changes in the Chinese economy, Chinese legal system or Chinese governmental
policies; |
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risk of improper action by Chinese employees or international distributors in violation
of Chinese law; |
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changing consumer preferences and demands; |
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the competitive nature of our business; |
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regulatory matters governing our products, including potential governmental or
regulatory actions concerning the safety or efficacy of our products, and network
marketing program; |
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risks associated with operating internationally, including foreign exchange risks; |
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our dependence on increased penetration of existing markets; |