Despite investors' early predictions against Herbalife Ltd.'s HLF odds to secure a loan, the New York Post reported Wednesday Herbalife acquired a $1.45 billion senior credit facility.
A source close to the matter told Benzinga the latest financing deal was actually oversubscribed. In fact, the underwriters received about $2.7 billion in offers.
A senior credit facility is a secured loan that takes precedence over unsecured "junior loans" provided by a lender. A senior secured loan is backed by collateral proffered by the borrower, which can be sold in the event that the borrower defaults on a loan payment or is unable to repay the full amount.
The Post reported, "The new facility replaces an Herbalife credit facility that was set to expire next month. The working capital loan matures in 2022 and the term loan matures in 2023."
Herbalife's stock closed at $61.73, up 2.6 percent. Shares are up more than 28 percent in 2017.
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