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Get filing alertsNu Skin refinances credit facility with $175M term loan and $75M revolver
Filed March 27, 2026 · Period ending March 27, 2026 · ~1 min read
Key Changes
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high
Company must maintain leverage ratio below 2.25x and interest coverage above 3.00x, providing guardrails on debt levels and servicing capacity.
Item 1.01 — Entry into a Material Definitive Agreement verify on EDGAR → -
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New five-year facility comprises $175M term loan (drawn in full at closing) and $75M revolver, replacing prior June 2022 credit agreement.
Item 1.01 — Entry into a Material Definitive Agreement verify on EDGAR → -
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Term loan requires 10% annual amortization ($17.5M/year in quarterly installments), with remaining balance due at maturity in 2031.
Item 1.01 — Entry into a Material Definitive Agreement verify on EDGAR → -
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Interest pricing tied to leverage ratio: Term SOFR plus initial 1.75% spread or base rate plus 0.75%, both adjustable based on performance.
Item 1.01 — Entry into a Material Definitive Agreement verify on EDGAR → -
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Facility secured by liens on subsidiary stock and guaranteed by material domestic subsidiaries, restricting equity flexibility.
Item 1.01 — Entry into a Material Definitive Agreement verify on EDGAR →
Summary
Nu Skin refinanced its existing credit agreement with a new $250 million five-year facility comprising a $175 million term loan and a $75 million revolving credit line. The company drew the term loan in full at closing on March 27, 2026, using proceeds to repay its prior facility from June 2022.
The refinancing extends the maturity runway to 2031 while maintaining performance-based pricing tied to the company's leverage ratio. The new facility imposes two key financial covenants: consolidated leverage cannot exceed 2.25x and interest coverage must remain above 3.00x. These thresholds provide lenders with protection while giving Nu Skin operational flexibility within defined boundaries.
The term loan amortizes at 10% annually through quarterly payments of approximately $4.4 million, with the remaining balance due at maturity. Interest rates are adjustable based on leverage, starting at Term SOFR plus 1.75% or a base rate plus 0.75%. For retail holders, this is a routine refinancing that extends debt maturity and maintains financial flexibility. The covenant levels suggest management expects to operate comfortably within the 2.25x leverage cap. Watch the company's quarterly filings for leverage and interest coverage trends relative to these thresholds, as covenant violations could trigger acceleration or require amendments.
Section-by-Section Diff
Event · Item 1.01 — Entry into a Material Definitive Agreement
Item 1.01 — Entry into a Material Definitive Agreement filed; see Key Changes for terms.
Added in current filing · verify on EDGAR →
The loans under the Credit Agreement bear interest, at the option of the Company, either (i) during any interest period selected by the Company, at the Secured Overnight Financing Rate for deposits in U.S. dollars with a maturity comparable to such interest period, adjusted for statutory reserves (“Term SOFR”), plus an initial spread of 1.75% per annum, subject to adjustment based on the consolidated leverage ratio of the Company, or (ii) at the greatest of (x) the federal funds effective rate plus 1/2 of 1%, (y) the prime rate from time to time announced by Bank of America, N.A. and (z) Term SOFR for a one-month interest period plus 1.00%, plus an initial spread of 0.75% per annum, subject to adjustment based on the consolidated leverage ratio of the Company.
The new facility offers two interest rate options: Term SOFR plus an initial 1.75% spread (adjustable based on leverage ratio), or a base rate (the highest of fed funds rate plus 0.5%, Bank of America prime rate, or one-month Term SOFR plus 1.00%) plus an initial 0.75% spread (also adjustable). The pricing is performance-based and tied to the company's consolidated leverage ratio.
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Figures/quotes linked to EDGAR · Narrative written by AI · Jun 21, 2026 · How we verify