Company emerges with strengthened balance sheet after eliminating approximately $170 million in debt
Positioned for long-term growth and innovation to meet the ever-changing needs of consumers with elevated products.
GILBERT, Ariz., April 17, 2023 /PRNewswire/ --Isagenix International ("Isagenix" or "the Company"), a leader in providing nutrition solutions for weight loss, performance, and healthy aging, is pleased to announce the completion of its recapitalization process in accordance with the terms of the Restructuring Support Agreement ("RSA") it reached on February 27, 2023. With the support of an Ad Hoc Group of the Company's investors, Isagenix is now positioned to operate with a stronger financial structure, reduced debt, and additional resources, having eliminated approximately $130 million in senior secured debt and approximately $40 million of unsecured debt.
The Company has also transitioned majority ownership to a group of its investors, including Arbour Lane Capital Management LP ("ALCM"), Cerberus Capital Management, L.P. ("Cerberus"), Crescent Capital Group ("Crescent"), and Summit House Capital Management LLC ("Summit House"). Isagenix co-founders Jim and Kathy Coover maintain minority ownership as they continue supporting the go-forward business strategy as evidenced by their contribution of $95 million in value, through the combination of newly contributed cash and their forgiveness of debt.
Pursuant to the terms of the RSA, the Company and its advisors will be forming and announcing a new Board of Directors in the coming weeks as it continues implementing the new ownership structure. The renewed Isagenix team will drive investments in innovation, digital solutions and overall wellbeing while operating with a sustainable capital structure.
"This is a watershed moment for Isagenix, and we are ready to innovate and reinvigorate our business by building on the strong financial foundation we've set through this process," said Isagenix Chief Executive Officer Sharron Walsh. "In the near term, our corporate employees, field associates, brand partners and customers alike will see the tangible, positive impact of this process as we move ahead with new product launches and business building initiatives. Most importantly, however, we're prepared to help guide communities toward better health and improved wellbeing for years to come with the changes to our capital structure in place and an enthusiastic leadership team at the helm."
Eric Hall, Managing Director at Crescent Capital, added on behalf of the investor group, "We believe in the Company, its leadership and its clear path forward, which is why we're excited to be part of Isagenix's next chapter. As the business continues to make smart, strategic investments for the future, we're confident that Isagenix is well-positioned for success and has the necessary resources to achieve its goals for sustainable growth."
Isagenix was represented in this matter by O'Melveny & Myers LLP, BRG, and FTI Capital Advisors LLC. The Ad Hoc Group of Investors was represented by Gibson, Dunn & Crutcher LLP and Ducera Partners LLC. Jim and Kathy Coover were represented by Snell & Wilmer.
About Isagenix International
Established in 2002, Isagenix International believes that everyone deserves to experience a healthy, joyful, and abundant life. The global wellbeing company based in Gilbert, Arizona artfully crafts more than 175 effective products and offers a supportive community for its customers worldwide. Isagenix shares its products through a network of independent distributors in 24 markets: the United States, Canada, Puerto Rico, Australia, New Zealand, Mexico, the United Kingdom, Ireland, the Netherlands, Belgium, Spain, Austria, Denmark, Finland, France, Germany, Italy, Japan, Norway, Poland, Portugal, Romania, Sweden, and Switzerland. For more information, visit Isagenix.com.
About Arbour Lane
Arbour Lane Capital Management, LP ("Arbour Lane") is a registered investment adviser focused primarily on opportunistic credit and special situations investments. Arbour Lane leverages its team's deep experience in various sectors, built over years at both investment banks and primary investment firms, to source and invest in undervalued credit opportunities and special situations in the middle market.
About Cerberus
Founded in 1992, Cerberus is a global leader in alternative investing with over $48 billion in assets across complementary credit, private equity, and real estate strategies. We invest across the capital structure where our integrated investment platforms and proprietary operating capabilities create an edge to improve performance and drive long-term value. Our tenured teams have experience working collaboratively across asset classes, sectors, and geographies to seek strong risk-adjusted returns for our investors. For more information about our people and platforms, visit us at www.cerberus.com.
About Crescent
Crescent Capital Group is headquartered in Los Angeles with offices in Boston, Chicago, London, and New York. With more than 100 investment professionals and over 200 employees, the firm invests at all levels of the capital structure, with a significant focus on below investment grade credit through strategies that invest in senior bank loans, unitranche loans, high yield debt, mezzanine debt, and other private debt securities. As of December 31, 2022, Crescent Capital Group managed over $40 billion of privately originated debt investments and marketable securities. For more information about Crescent Capital Group, please visit www.crescentcap.com.
About Summit House
Summit House Capital Management, LLC is a registered investment advisory firm founded by Jed Walsh in 2019. The company provides discretionary investment advisory services to private investment funds and separately managed accounts. Summit House focuses on stressed, middle-market credit, including syndicated credits with $100mm to $500mm of overall tradeable market value. The company has discretion, subject to the terms of the clients' governing documents, to formulate investment objectives, direct and manage the investment and reinvestment of the clients' assets. The terms of investments, including client objectives, limitations, and strategies, are governed exclusively by the clients' governing documents. Summit House offers the same and different suites of services to its clients, and specific client investment strategies and their implementation depend on the client's investment objectives. As of December 31, 2022, Summit House managed approximately $157,429,408 million of advisory assets, all of which were on a discretionary basis. Investors in the funds cannot generally place investment restrictions on the firm and may not tailor Summit House's advisory services to their individual needs.
No Offer: Forward-Looking Statements
This press release includes forward-looking statements, which include, but are not limited to, expectations with respect to the transactions and the Company's future prospects. Actual results may differ materially from those expectations due to a variety of factors. Any forward-looking statement made in this release speaks only as of the date hereof and the Company does not undertake any obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise.
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SOURCE Isagenix International
