By Paul A. Harris
St. Louis, March 7 - General Nutrition Centers, Inc. priced a $300 million issue of six-month Libor plus 450 basis points seven-year senior floating-rate toggle notes (Caa1/CCC) at 99.00 on Wednesday, according to a market source.
The issue priced on top of price talk.
The notes come with a 75 bps coupon step-up toggle feature should the issuer elect to make and in-kind, as opposed to cash, coupon payment.
The tranche is part of an overall $425 million note offering that includes a $125 million tranche of eight-year senior subordinated notes (Caa2/CCC), which have already been placed, according to an informed source.
JP Morgan, Goldman Sachs & Co. and Lehman Brothers were joint bookrunners for the Rule 144A transaction. Merrill Lynch & Co. was a co-manager.
Proceeds will be used to help fund the LBO by Ares Management LLC and Ontario Teachers' Pension Plan from Apollo Management, LP.
The issuer is a Pittsburgh-based retailer of nutritional products, supplements and sports nutrition, diet and energy products.
| Issuer: | General Nutrition Centers, Inc.
|
| Face amount: | $300 million
|
| Proceeds: | $297 million
|
| Maturity: | March 15, 2014
|
| Security description: | Senior floating-rate toggle notes
|
| Bookrunners: | JP Morgan, Goldman Sachs & Co., Lehman Brothers
|
| Co-manager: | Merrill Lynch & Co.
|
| Coupon: | Six-month Libor plus 450 bps
|
| Toggle feature: | 75 bps for the life of the notes if issuer elects to PIK
|
| Price: | 99.00
|
| Call features: | Callable on March 15, 2009 at 102.0, 101.0, par on and after March 15, 2011
|
| Equity clawback: | Until March 15, 2009 for up to 35% at the applicable coupon
|
| Change-of-control put: | 101
|
| Trade date: | March 7
|
| Settlement date: | March 16
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: CCC
|
| Distribution: | Rule 144A/Regulation S
|
| Price talk: | Libor plus 450 bps at 99.00
|
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