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Prospect News home > News index > List of issuers G > Headlines for GNC Holdings, Inc. > News item |
S&P lifts GNC, rates loan B
S&P said it raised its corporate credit rating GNC Holdings Inc. to CCC+ from SD and placed all of its ratings on CreditWatch with negative implications.
At the same time, the agency assigned a B issue-level rating and 1 recovery rating to the company's proposed $275 million FILO term loan. The 1 recovery rating indicates an expectation for very high recovery (90%-100%; rounded estimate of 95%).
S&P also raised the issue-level rating on the company's proposed amended term loan facility to B- from CC and revised the recovery rating to 2 from 3, indicating an expectation for substantial recovery (70%- 90%; rounded estimate of 70%).
The agency did not rate the company's proposed $100 million ABL facility or the convertible preferred stock.
“The upgrade reflects a view that GNC's maturity profile will improve upon completion of the proposed refinancing transactions,” S&P said in a news release.
The agency said the CreditWatch placement reflects the potential risk that GNC cannot close the proposed refinancing transactions.
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