By Paul A. Harris
St. Louis, March 9 - General Nutrition Centers, Inc. priced a downsized $110 million issue of eight-year senior subordinated notes (Caa2/CCC) at par to yield 10¾%, according to a market source.
JP Morgan, Goldman Sachs & Co. and Lehman Brothers were the bookrunners for the issue, which was marketed "club-style" to select accounts, according to the source.
The issue was downsized from $125 million, with $15 million of the financing shifted to the company's term loan.
The subordinated note tranche was part of an overall $410 million note transaction that included a $300 million issue of six-month Libor plus 450 basis points seven-year senior floating-rate toggle notes (Caa1/CCC) at 99.00 earlier in the week.
Proceeds will be used to help fund the leveraged buyout of the company 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: | $110 million (decreased from $125 million with $15 million shifted to term loan)
|
| Maturity: | March 15, 2015
|
| Security description: | Senior subordinated notes
|
| Bookrunners: | JP Morgan, Goldman Sachs & Co., Lehman Brothers
|
| Coupon: | 10¾%
|
| Price: | Par
|
| Yield: | 10¾%
|
| Call protection: | Two years
|
| Settlement date: | March 16
|
| Ratings: | Moody's: Caa2
|
| Standard & Poor's: CCC
|
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