SUBSEQUENT EVENT

9 Months Ended

Sep. 30, 2014

15.	SUBSEQUENT EVENTS

On October 9, 2014, the Company entered into a Credit Agreement (the "Credit Agreement") with various financial institutions, and Bank of America, N.A. as administrative agent. The Credit Agreement provides for a $127.5 million term loan facility, a 6.6 billion Japanese yen term loan facility and a $187.5 million revolving credit facility, each with a term of five years. On October 10, 2014, the Company drew the full amount of the term loan facilities, which bear interest at 2.9018% on U.S. dollar borrowings and 2.835% on Japanese yen borrowings, and $112.5 million of the revolving credit facility, which bears interest at 2.9018%. Any additional amounts drawn under the revolving credit facility will bear interest at rates that will be determined in accordance with the Credit Agreement. Half of the principal amount of the term loan facilities will be payable in increasing quarterly installments over a five-year period, with the remainder payable at the end of the five-year term. The Credit Agreement requires the Company to maintain a consolidated leverage ratio not exceeding 2.25 to 1.00 and a consolidated interest coverage ratio of no less than 3.00 to 1.00.

NU SKIN ENTERPRISES, INC.

Notes to Consolidated Financial Statements

As set forth in Note 10, "Debt," on October 10, 2014, the Company repaid debt that was outstanding under its credit agreements with Bank of America., N.A. and its notes with Prudential Investment Management, Inc. and affiliates. The Company also paid a $7.4 million fee related to the prepayment of debt. On October 15, 2014 the Company repaid all amounts outstanding under its Japan subsidiary's revolving line of credit.