Herbalife Nutrition Ltd. managed to persuade investors to lend it $600 million so it could buy back shares, an unusual move at a time when companies are borrowing billions of dollars to shore up liquidity during the coronavirus pandemic.
Proceeds from the offering will be used for general corporate purposes, which could include the purchase of stock or capital investment, said the people, who asked not to be named discussing a private transaction. “The demand for our products and for our services has gone up around the world,” Chief Executive John Agwunobi said on a recent earnings call.
Debt-financed share buybacks haven’t been the priority for companies suffering from sliding revenues during the outbreak. But Herbalife has a history of doing so with its last buyback for $600 million in May 2018, according to data compiled by Bloomberg. It also authorized an ongoing five-year $1.5-billion buyback program in October 2018.The new 5.25-year bond yields slightly more than the company’s existing $400 million of 7.25% unsecured notes due in 2026 that last traded at 99.
Can’t believe people still buy this crap
They’re still around?
A good thing to do in this climate John_Hempton
DOJPH
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