DISTRESSED DAILY: Diet MLM Firm Isagenix Gets a ‘D’ from S&P

April 26, 2021, 12:07 PM

The union of two multi-level marketing companies for diet supplements raised concern among ratings analysts in 2020, but the company’s latest move earned it distressed debt’s scarlet letter of “D.”

S&P Global Ratings said Friday that Isagenix Worldwide’s recent repurchases of $65 million of its term loan at around 65 cents on the dollar were a distressed exchange tantamount to default, and lowered its rating on the $375 million loan.

S&P’s note focused on the lenders who sold their loans back to the company and “received substantially less than they were originally promised under the term loan,” analysts wrote ...

To read the full article log in.

Learn more about a Bloomberg Law subscription.