Most-Read Stories on TCR - Top Stories

HERBALIFE LTD: Whitney Bid Rejection Cues S&P to Retain Watch

Troubled Company Reporter, Apr. 5, 2007 

Standard & Poor's Ratings Services said that its 'BB+' corporate credit rating on Los Angeles-based Herbalife Ltd. remains on CreditWatch with negative implications following the company's announcement that the company's board of directors has rejected a bid to be acquired by Whitney V L.P.  The board indicated that although it views Whitney's bid as too low, it would consider an improved offer.  

The company is currently carrying minimal debt leverage, but existing debt capacity would be stretched well beyond the limits of the current ratings if a predominantly debt-funded acquisition of the company were to transpire.  Ratings on the company will remain on CreditWatch until greater clarity around a potential LBO emerges.
 

About the InterNet Bankruptcy 
LibraryBack to Most-Read List

TCR Top Stories is a daily newsletter that contains ten news item extracts from the news reports in the Troubled Company Reporter.  It's free and delivered to you every business day via email.  To view and join this free service, click here.

Subscribe to the Troubled Company Reporter.

Learn more about the  Troubled Company Reporter