Nutrition company Herbalife Ltd. is reattempting a significant debt offering, seeking to place $800 million in seven-year senior secured notes. Management previously pulled a similar loan offering just last month, citing immediate market instability fueled by geopolitical concerns and AI sector jitters impacting risk appetite for lower-rated debt instruments.

The planned issuance, led by Bank of America Corp., will see proceeds directed toward refinancing existing bonds that carry a hefty 12.25% interest rate and mature in 2029. Investor calls are scheduled for Tuesday, indicating a swift push to capitalize on improved credit market sentiment since the initial shelving.

Market conditions have seemingly thawed since the previous attempt; average risk premiums on US junk bonds have subsided to pre-conflict levels, making the current fundraising environment more favorable for borrowers. This refinancing move aims to manage Herbalife’s cost of capital by swapping out expensive legacy debt for new obligations.

Issuers for the new debt will be Herbalife International Inc. and HLF Financing Sarl LLC, attempting to lock in financing terms before any potential future volatility returns. The successful placement of this $800 million offering depends entirely on current investor readiness to absorb riskier corporate credit.