Herbalife Nutrition Ltd. announced it has commenced a “modified Dutch auction” self-tender offer.
The offer is to purchase for cash up to $750 million of its common shares at a per share price not greater than $50.00 nor less than $44.75.
The closing price of the company’s common shares on the New York Stock Exchange on July 10, 2020, the last full trading day before the commencement of the tender offer, was $45.64 per share. The tender offer is scheduled to expire at 5:00 PM, EDT, on August 11, 2020, unless the offer is extended.
The company also released preliminary volume point results for the second quarter ending June 30, 2020. Based on preliminary and unaudited information, the company expects second quarter 2020 volume points of approximately 1.7 billion, an increase of 12.4 percent compared to the second quarter 2019, representing the largest volume point quarter in company history.
“Coming on the heels of our largest volume point quarter in the company’s history, this tender offer reflects our continued confidence in the business and our long-term strategy,” said John Agwunobi, chairman and CEO of the company. “With our strong cash flows and favorable debt maturity schedule, we believe we can drive future growth and invest in our business while continuing to return value to shareholders.”
The tender offer will be made under the company’s $1.5 billion share repurchase program announced on October 30, 2018, substantially all of which remains available prior to this tender offer.
For more information about the “modified Dutch auction” tender offer and other details, click here.
