Business Context and Reporting Period
Company: Nu Skin Enterprises, Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: March 27, 2026
Event: Entry into a Material Definitive Agreement (Second Amendment and Restatement of Credit Agreement).
Key Financial Metrics and Debt Structure
This filing details a refinancing of the company's senior secured credit facilities. The filing does not provide current revenue, profit, cash flow, or margin data.
| Facility Type | Amount | Term | Status |
|---|---|---|---|
| Term Loan Facility | $175 million | 5 years | Drawn in full on Closing Date |
| Revolving Credit Facility | $75 million | 5 years | Available |
| Swingline Subfacility | Up to $10 million | N/A | Available |
| Letters of Credit | Up to $10 million | N/A | Available |
Interest Rates: Based on Term SOFR or Prime Rate plus an initial spread of 1.75% (Term SOFR) or 0.75% (Prime), subject to leverage ratio adjustments. Default interest increases by 2.00% per annum.
Amortization: Term loan amortizes quarterly at 10.0% per annum, with the remainder due at maturity.
Use of Proceeds: Repayment of the Existing Credit Agreement (dated June 14, 2022), working capital, capital expenditures, and general corporate purposes.
Material Changes Versus Prior Period
- Refinancing: The new agreement amends and restates the Existing Credit Agreement, replacing the prior facility entirely.
- Debt Restructuring: The company utilized the full $175 million term loan proceeds to repay all outstanding amounts under the previous credit agreement.
- Covenant Updates: The new agreement establishes specific financial covenants not explicitly detailed in the prior agreement text provided here, including a consolidated leverage ratio cap of 2.25 to 1.00 and an interest coverage ratio floor of 3.00 to 1.00.
Guidance, Risks, and Covenants
Financial Covenants:
- Consolidated Leverage Ratio: Must not exceed 2.25 to 1.00.
- Consolidated Interest Coverage Ratio: Must be no less than 3.00 to 1.00.
Restrictive Covenants: The agreement restricts the company's ability to incur additional indebtedness, create liens, make acquisitions, enter into mergers, make asset dispositions, pay dividends, or change the nature of the business without exceptions.
Events of Default: Include non-payment, covenant breaches, incorrect representations, cross-defaults on other indebtedness (thresholds of $20 million or 12.5% of Consolidated EBITDA), bankruptcy, material judgments, ERISA events, and change of control.
Management Commentary: The filing contains no forward-looking guidance or management commentary regarding future performance, only the terms of the debt agreement.
Investor Verification Checklist
- Verify the company's current consolidated leverage ratio and interest coverage ratio to ensure compliance with the new 2.25x and 3.00x covenants.
- Confirm the exact amount of the "Existing Credit Agreement" repaid to validate the full utilization of the $175 million term loan.
- Review the full text of Exhibit 10.1 (Credit Agreement) for specific definitions of "Consolidated EBITDA" and any carve-outs for the restrictive covenants.
- Monitor the company's ability to service the 10% annual amortization on the term loan alongside interest payments.
- Check for any pending litigation or judgments exceeding the $20 million or 12.5% of EBITDA threshold that could trigger a cross-default.