Herbalife Nutrition Ltd., which makes products for weight management, energy and fitness, and personal care, on May 30 said it agreed to repurchase about 6.5% of its outstanding common shares in a tender offer worth up to $600 million.
It accepted for purchase of 11,428,571 million common shares tendered through a modified Dutch auction at a cash purchase price of $52.50 per share.
The tender was oversubscribed, and Herbalife will accept a prorated portion of 23% of the stock offered.
The company, based in Los Angeles, will fund the share purchase from cash in hand and the $1.30 billion term loan of its $1.45 billion credit facility, which it entered Feb. 15, 2017.
Herbalife initially launched the tender offer April 18, proposing to buy stock at between $98 and $108 per share. However, it adjusted the price range May 16 to between $49 and $54 following a two-for-one stock split.
