Herbalife Sees Q4 Adj. EPS Of $1.26 - $1.30 - Quick Facts

(RTTNews) - Herbalife Ltd. (HLF) provided a preview of expected preliminary results for its fourth quarter and fiscal year 2013.

Looking ahead to the fourth quarter, adjusted earnings per share is expected to be in a range of $1.26 - $1.30, and reported earnings per share of $1.13 - $1.17. There were no non-GAAP adjustments reported against the company's 2012 fourth quarter U.S. GAAP results.

For the full year, adjusted earnings per share is likely to be in the range of $5.35 - $5.39, and reported EPS of $4.89 - $4.93. There were no non-GAAP adjustments reported against the company's 2012 full year U.S. GAAP results.

In addition, the company sees net sales for the full year and fourth quarter 2013 to grow about 18.5% and 19.8%, respectively, compared with the year-ago periods. Volume points for full year and fourth quarter 2013 are anticipated to increase nearly 13.1% and 12.7%, respectively, compared with the previous years.

Additionally, the firm said it plans to offer $1 billion aggregate principal amount of convertible senior notes due 2019 in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. The initial purchasers of the Convertible Notes will be Bank of America Merrill Lynch, Credit Suisse, HSBC and Morgan Stanley.

The company expects to grant an option to the initial purchasers to buy up to an additional $150 million aggregate principal amount of Convertible Notes. The Convertible Notes are expected to pay interest semiannually and upon conversion will be settled in cash and, if applicable, the company's common shares, based on a conversion rate to be determined at the pricing of the Convertible Notes. The Convertible Notes will mature on August 15, 2019, unless repurchased or converted in accordance with their terms prior to such date. Earlier to May 15, 2019, the Convertible Notes will be convertible only upon the occurrence of certain events and during certain periods, and thereafter, at any time until the second scheduled trading day immediately preceding the maturity date.

Herbalife anticipates to begin repurchasing shares of Herbalife common stock, and expects to report full-year results on February 18, 2014.