Moody’s trims General Nutrition

Moody’s Investors Service said it downgraded General Nutrition Centers, Inc.’s corporate family rating to Ca from Caa1, its probability of default rating to Ca-PD from Caa1-PD, its senior secured term loan B2 to Ca from Caa2 and its senior secured FILO term loan to Caa2 from B1. Its speculative grade liquidity remains SGL-4.

“GNC’s downgrade reflects that the disruption posed by Covid-19 will suppress GNC’s cash flow and make it unlikely that the company will either repay or refinance its upcoming August 2020 maturity of its $159 million convertible notes,” said Christina Boni, a Moody’s vice president, in a press release.

. The downgrade also considers GNC’s $686 million in term loans contain a springing maturity to May 16, or later should more than $50 million of the convertible notes remain outstanding at that time, the agency said.

The outlook remains negative.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.