Will transition majority ownership to marquee group of investors, eliminating debt and significantly increasing the Company’s ability to invest and grow.
Continued financial support from Coover family, who will maintain minority ownership.
Isagenix International (“Isagenix” or “the Company”), a leader in providing nutrition solutions for weight loss, performance, and healthy aging, announced today that it has reached a definitive agreement with an ad hoc group of the Company’s investors to secure the long term future of the business.
This agreement, also known as a Restructuring Support Agreement or “RSA,” marks the positive culmination of discussions between the Company and its key financial stakeholders to recapitalize and support the business, eliminating approximately $130 million in senior secured debt.
Under the terms of the RSA, the Company’s investors will take a controlling stake in the business.
The RSA also contemplates a contribution from Isagenix founders Jim and Kathy Coover, of $95 million of value through the combination of new contributed cash and the forgiveness of debt, marking their continued support for the strategy, vision, and new chapter of the Company.
Their contribution, along with an effective $130 million dollar investment via debt reduction from secured lenders, provides Isagenix with a substantial improvement in its capital position that