Herbalife Spikes Following Company's Announcement Of Repurchasing $266M Worth Of Shares

Herbalife (NYSE: HLF) on Wednesday announced that it has entered into an agreement with Bank of America Merrill Lynch to repurchase $266 million of Herbalife's stock.

The press release states, “Under the terms of the repurchase agreement, today Herbalife will pay $266 million from the company's cash on hand and will receive a portion of the shares based on an Interim Share Delivery schedule, and the remainder upon completion of the program.”

The transaction is expected to be completed by the end of the second quarter 2014, at the latest. The repurchased shares will be retired.

Shares of Herbalife closed at $59.56 on Tuesday. In pre-market trading, shares spiked to $62.00 before dropping almost three percent to $60.20.