LOS ANGELES -- (Business Wire)
Herbalife Ltd. (NYSE: HLF) (“Herbalife” or “Company”) announced today
several strategies designed to enhance shareholder value.
As part of this plan, the Company has updated its capital allocation
strategy and is preparing to pursue a “modified Dutch auction” tender
offer seeking to purchase between $450 million and up to $650 million of
shares of the Company’s outstanding common stock. The Company is also
seeking to refinance a portion of the Company’s $1.15 billion
outstanding Convertible Notes due on August 15, 2019 as the Company
believes new terms will allow the Company greater flexibility in the use
of its capital. The Company expects these transactions will be completed
in the second quarter of 2018.
The anticipated tender offer is consistent with the Company’s long-term
asset allocation strategy, a strategy that has resulted in the Company
repurchasing approximately $3.9 billion of the Company’s outstanding
common stock, representing approximately 91 million shares, since 2007.
The Company also intends to effect a two-for-one stock split of the
Company’s common stock. “Herbalife’s strong financial performance is a
testament to the demand for our great-tasting, quality nutrition
products, the Company’s unique, effective and personalized distribution
channel and the Company’s global geographic reach. This would be the
first split in seven years and is part of our comprehensive program to
increase shareholder value,” said Herbalife CEO, Rich Goudis.
Lastly, Herbalife announced its intention to change the Company’s name
to Herbalife Nutrition Ltd., reflecting the Company’s growing leadership
and expertise in the field of nutrition.
“We believe changing our company name to Herbalife Nutrition is more
representative of our purpose to make the world healthier and happier
and reflective of our strategies and investments to be the global leader
in the nutrition industry,” Goudis said.
The proposals seeking to change the Company’s name and effect a stock
split require shareholder approval and will be submitted to a vote at
the Company’s Annual General Meeting of Shareholders on April 24, 2018.
If the shareholders approve the stock split, it is anticipated that the
record date will be May 7, 2018.
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@HerbalifeNews.
About Herbalife
Herbalife is a global nutrition company that has been changing people's
lives with great products since 1980.
Our weight-management, targeted nutrition, energy and sports and fitness
and outer nutrition care products are available exclusively to and
through dedicated Herbalife independent members in more than 90
countries. We are committed to fighting the worldwide problems of poor
nutrition and obesity by offering high-quality products, one-on-one
coaching with an Herbalife member and a community that inspires
customers to live a healthy, active life.
We support the Herbalife Family Foundation (HFF) and its Casa Herbalife
programs to help bring good nutrition to children in need. We also
sponsor more than 190 world-class athletes, teams and events around the
globe, including Cristiano Ronaldo, the LA Galaxy and champions in many
other sports.
The Company has over 8,000 employees worldwide, and its shares are
traded on the New York Stock Exchange (NYSE: HLF) with net sales of
approximately $4.4 billion in 2017. To learn more, visit Herbalife.com
or IAmHerbalife.com.
The Herbalife Investor Relations website at http://ir.herbalife.com
contains a significant amount of financial and other information about
the Company. The Company encourages investors to visit its website from
time to time, as information is updated and new information is posted.
This press release is for informational purposes only and does not
constitute an offer to purchase, a solicitation of an offer to purchase
or sell any securities, including but not limited to the statements
herein regarding the Company’s expectations for a debt refinancing and
share repurchase.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains “forward-looking statements.” All statements
other than statements of historical fact are “forward-looking
statements” for purposes of federal and state securities laws.
Forward-looking statements include, but are not limited to, statements
regarding the Company’s initiative to enhance shareholder value as
described herein, including the anticipated debt refinancing, share
repurchase, stock split and corporate name change, and our expectations,
hopes or intentions regarding such future plans. 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 or
incorporated by reference in our filings with the SEC. Given these
uncertainties, you should not place undue reliance on these
forward-looking statements. Forward-looking statements represent our
estimates and assumptions only as of the date of this press release. No
assurances can be given that any debt refinancing or share repurchases
will be successfully completed, if at all, or the terms upon which any
such transactions may occur. In addition, no assurances can be given
that the anticipated stock split or name change proposals will be
approved by shareholders, of if they are approved, that the proposals
will be implemented. We expressly disclaim any duty to provide updates
to forward-looking statements, and the estimates and assumptions
associated with them, after the date of this press release, in order to
reflect changes in circumstances or expectations or the occurrence of
unanticipated events, except to the extent required by applicable
securities laws. All forward-looking statements are qualified in their
entirety by reference to the factors discussed above and under “Risk
Factors” set forth in Part I, Item 1A and elsewhere of the Company’s
Annual Report on Form 10-K, filed with the SEC on February 22, 2018, as
well as the risks and uncertainties discussed in the Company’s other
filings with the SEC. We qualify all of our forward-looking statements
by these cautionary statements. We caution you that these risks are not
exhaustive.
View source version on businesswire.com: http://www.businesswire.com/news/home/20180228005526/en/
Contacts:
Herbalife
Gary Kishner, 213.745.0456
Director, Media Relations
Garyki@herbalife.com
or
Investor
Contact:
Eric Monroe, 213.745.0449
Director, Investor Relations
ericm@herbalife.com
Source: Herbalife Ltd
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