Investment world gives thumbs up to Nu Skin credit facility

By Simon Pitman

- Last updated on GMT

Investment world gives thumbs up to Nu Skin credit facility

Related tags Nu skin Mainland china

Shares in US-based Nu Skin spiked yesterday on the back of renewed investor confidence after the company announced the confirmation of a $375m credit note with the Deutsche Bank.

Nu Skin hit significant problems at the beginning of this year when China authorities decided to investigate its direct sales techniques throughout the country.

The enquiry effectively froze sales for the company in China for several months, which had a big impact on its revenues as Greater China is the international skin care player's mainstay market.

In 2013 mainland China became the company’s largest market, with a 32% share of its total revenues, which topped $3.1bn last year.

According to the credit note, a "portion of the proceeds was used to pay other outstanding debt, with the remainder available for working capital and other corporate purposes. Management commented on the release that the facility provides greater flexibility to return value to shareholders."

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