GNC bonds and bank debt expected to launch in November

By Sara Rosenberg

New York, Oct. 22 - General Nutrition Cos. Inc. is expected launch a high-yield bond offering and a new credit facility in November with Lehman and JPMorgan earmarked to lead both transactions, a source close to the deal told Prospect News.

These proposed debt offerings will be used by the company to help support its leveraged buyout by Apollo Management LP from Royal Numico NV.

This past Friday, Numico announced that reached an agreement to sell GNC for $750 million. The transaction is subject to customary regulatory approvals and is expected to be completed in the fourth quarter of 2003.

"The sale has to close by year-end. With Christmas in December both the bank and the bond will probably have to launch in November," the source said, adding that there are no specific details on the financing as of yet.

Final approval for the sale will be asked for from Numico shareholders during an extraordinary general meeting of shareholders on Nov. 3.

Numico will use the proceeds from the divestiture to pay down the dollar-denominated part of its existing senior credit facility, thereby substantially reducing its debt level and related interest expenses.

GNC is a Pittsburgh producer, marketer and seller of nutritional supplements.

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