
Cut out any dead wood. Cut out down to the base of the shrub up to 1/3 of the branches, but cut only the oldest (biggest) ones. Shorten the rest if you need too. Spray with a bug killer. Feed and water the plant well for the rest of the Summer. Hope for the best! If the shrub is still alive it should start to show some new growth in a 3-4 weeks.
Are you sure they are hebes? Hebes tend to stay rather compact without any intervention. If they are Hebes, they they don't respond well to heavy pruning, so go easy. If there are some leaves that have escaped the caterpillars perhaps your local garden centre can identify the shrubs for you. They may also be able to tell you if the shrubs have been attacked by a fungus as well as insects.