GNC bond tender to be financed in part with new notes, deal expected in March

By Paul A. Harris

St. Louis, Feb. 16 - Tender offers from GNC Parent Corp. and General Nutrition Centers, Inc., announced Friday, are expected to be financed in part with the proceeds from a new issue of high-yield notes, according to a market source who said that the deal will likely come to market in mid-March.

GNC Parent is tendering for its $425 million floating-rate senior PIK notes due 2011. In addition, General Nutrition Centers is tendering for its $150 million outstanding 8 5/8% senior notes due 2011 and $215 million outstanding 8½% senior subordinated notes due 2010.

J.P. Morgan Securities Inc. and Goldman, Sachs & Co. are the dealer managers.

The tender offers will expire at midnight ET on March 15.

The companies are also soliciting consents to amend the indentures governing the notes to eliminate substantially all of the restrictive covenants and some events of default.

GNC is the parent company of General Nutrition Centers, a Pittsburgh-based nutritional supplements retailer that is being acquired by Ares Management LLC and Ontario Teachers' Pension Plan from Apollo Management, LP.

© 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.