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

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 ...