LOS ANGELES (AFX) - Herbalife Ltd., a holding company of Herbalife International, maker of weight control programs, said Friday it refinanced an existing $225 million senior secured credit line and will take a one-time charge related to the refinancing.
The company said it closed on a $300 million senior secured credit facility, which consists of a $200 million, seven-year loan and a $100 million, six-year revolving credit facility.
After closing, Herbalife used $65 million of available cash and $15 million in borrowings under the new revolver to repay outstanding borrowings under an existing credit line and to fund closing costs on the transaction.
As a result of the refinancing, Herbalife expects to take a one-time charge of $14 million for the write-off of unamortized deferred financing costs.
Herbalife closed down $1.92, or 5.5 percent, at $33.08 on the New York Stock Exchange.
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