Snell & Wilmer Advises Co-Founders of Global Health and Wellness Company Isagenix in Recapitalization and Transition to New OwnershipApril 27, 2023
PHOENIX – Snell & Wilmer advised Jim and Kathy Coover, Co-Founders of Isagenix, a leader in providing nutrition solutions for weight loss, performance, and healthy aging, in the recapitalization process in accordance with the terms of the Restructuring Support Agreement (“RSA”). The restructuring is expected to position Isagenix to operate with a stronger financial structure, reduced debt, and additional resources, having eliminated approximately $130 million in senior secured debt and approximately $40 million of unsecured debt.
The company has also transitioned majority ownership to a group of its investors, including Arbour Lane Capital Management LP ("ALCM"), Cerberus Capital Management, L.P. ("Cerberus"), Crescent Capital Group ("Crescent"), and Summit House Capital Management LLC ("Summit House"). Isagenix co-founders Jim and Kathy Coover maintain minority ownership as they continue supporting the go-forward business strategy as evidenced by their contribution of $95 million in value, through the combination of newly contributed cash and their forgiveness of debt.
"This is a watershed moment for Isagenix, and we are ready to innovate and reinvigorate our business by building on the strong financial foundation we've set through this process," said Isagenix Chief Executive Officer Sharron Walsh in a press release. "In the near term, our corporate employees, field associates, brand partners and customers alike will see the tangible, positive impact of this process as we move ahead with new product launches and business building initiatives. Most importantly, however, we're prepared to help guide communities toward better health and improved wellbeing for years to come with the changes to our capital structure in place and an enthusiastic leadership team at the helm."
Pursuant to the terms of the RSA, the Company and its advisors will be forming and announcing a new Board of Directors in the coming weeks as it continues implementing the new ownership structure. The renewed Isagenix team will drive investments in innovation, digital solutions and overall wellbeing while operating with a sustainable capital structure.
David Weiss led the Snell & Wilmer team advising Jim and Kathy Coover in the recapitalization and transition with the assistance of Chris Bayley and Bahar Schippel.