NU SKIN ENTERPRISES, INC. 8-K

What Happened

• Nu Skin Enterprises, Inc. announced on March 27, 2026 that it entered into a Second Amendment and Restatement Agreement establishing a new Second Amended and Restated Credit Agreement with Bank of America, N.A. as Administrative Agent and a group of lenders. The Credit Agreement provides a $175 million five‑year term loan (drawn in full at closing) and a $75 million five‑year revolving credit facility. All amounts drawn at closing were used to repay the Company’s prior credit agreement.

Key Details

• Total facilities: $175M term loan (fully drawn) + $75M revolving credit (5‑year term).
• Repayment/amortization: term loan amortizes quarterly to equal an annual 10.0% amortization; remaining balance due at final maturity.
• Pricing: borrower choice of (i) Term SOFR + initial spread 1.75% (spread adjusts with leverage) or (ii) higher of specified base rates + initial spread 0.75% (also leverage‑based); overdue amounts incur +2.00% default interest.
• Additional features & protections: revolving facility includes a $10M swingline subfacility and up to $10M available for letters of credit; obligations are guaranteed by material U.S. subsidiaries and secured by liens on capital stock of material subsidiaries.
• Financial covenants and restrictions: consolidated leverage ratio ≤ 2.25:1.00 and consolidated interest coverage ratio ≥ 3.00:1.00; customary restrictions on liens, additional debt, investments/acquisitions, dispositions, dividends, affiliate transactions and certain accounting or organizational changes.
• Events of default include non‑payment, covenant breaches, materially incorrect representations, certain payment defaults under other indebtedness (threshold: greater of $20M or 12.5% of Consolidated EBITDA), bankruptcy events, significant judgments, ERISA events, invalidity of collateral/guarantees, and change of control.

Why It Matters

• This refinancing secures committed liquidity ($250M total capacity) and replaces the prior credit agreement, which reduces near‑term refinancing risk and provides working capital flexibility for operations, capital expenditures and general corporate purposes. Investors should note the financial covenants (leverage and interest coverage) and collateral/guarantee structure, which can limit corporate actions (dividends, additional debt, larger acquisitions) if covenants tighten or are tested. The interest rate is variable and tied to Term SOFR or alternative base rates, so financing costs will move with market rates and the Company’s leverage profile.