Herbalife Announces Strategic Initiatives to Enhance Shareholder Value

As part of this plan, the Company has updated its capital allocation strategy and is preparing to pursue a "modified Dutch auction" tender offer seeking to purchase between $450 million and up to $650 million of shares of the Company's outstanding common stock. The Company is also seeking to refinance a portion of the Company's $1.15 billion outstanding Convertible Notes due on August 15, 2019 as the Company believes new terms will allow the Company greater flexibility in the use of its capital. The Company expects these transactions will be completed in the second quarter of 2018.

The anticipated tender offer is consistent with the Company's long-term asset allocation strategy, a strategy that has resulted in the Company repurchasing approximately $3.9 billion of the Company's outstanding common stock, representing approximately 91 million shares, since 2007.

The Company also intends to effect a two-for-one stock split of the Company's common stock. "Herbalife's strong financial performance is a testament to the demand for our great-tasting, quality nutrition products, the Company's unique, effective and personalized distribution channel and the Company's global geographic reach. This would be the first split in seven years and is part of our comprehensive program to increase shareholder value," said Herbalife CEO, Rich Goudis.

Lastly, Herbalife announced its intention to change the Company's name to Herbalife Nutrition Ltd., reflecting the Company's growing leadership and expertise in the field of nutrition.

"We believe changing our company name to Herbalife Nutrition is more representative of our purpose to make the world healthier and happier and reflective of our strategies and investments to be the global leader in the nutrition industry," Goudis said.

The proposals seeking to change the Company's name and effect a stock split require shareholder approval and will be submitted to a vote at the Company's Annual General Meeting of Shareholders on April 24, 2018. If the shareholders approve the stock split, it is anticipated that the record date will be May 7, 2018.