New York, Aug. 4 – GNC Holdings, Inc. priced $250 million of five-year convertible senior notes after the market close on Tuesday with a 1.5% coupon and a 30% initial conversion premium.
The deal priced at the rich end of coupon talk, which had been set at 1.5% to 2%, and the cheap end of premium talk, which was circulated at 30% to 35%.
J.P. Morgan Securities LLC is bookrunner for the Rule 144A deal.
The offering has a greenshoe for $37.5 million.
GNC’s deal has a conversion price of $66.16.
The notes are non-callable, have takeover protection and will be convertible into cash, shares or a combination of both.
About $100 million of the proceeds will be used to repurchase shares of common stock from purchasers of the notes. Remaining proceeds will be used to reduce borrowings under its term loan facility.
Pittsburgh-based GNC is a specialty health and wellness retailer.
| Issuer: | GNC Holdings, Inc.
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| Issue: | Convertible senior notes
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| Amount: | $250 million
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| Greenshoe: | $37.5 million
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| Maturity: | 2020
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| Coupon: | 1.5%
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| Initial conversion premium: | 30%
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| Conversion price: | $66.16
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| Conversion rate: | 15.1156
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| Call: | Non-callable
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| Net share settlement: | Yes
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| Bookrunner: | J.P. Morgan Securities LLC
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| Co-manager: | UBS Securities LLC
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| Distribution: | Rule 144A
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| Pricing date: | Aug. 4, after close
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| Settlement: | Aug. 10
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| Stock symbol: | NYSE: GNC
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| Stock price: | $50.89 at close on Aug. 4
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| Market capitalization: | $4.1 billion
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