GNC $360 million credit facility to launch Wednesday

By Sara Rosenberg

New York, Nov. 7 - General Nutrition Cos. Inc. is scheduled to hold a bank meeting on Wednesday regarding a $360 million credit facility, according to a source close to the deal. Lehman and JPMorgan are the lead banks on the transaction.

The facility consists of a $75 million five-year revolver with an interest rate of Libor plus 300 basis points and a $285 million six-year term loan B with an interest rate of Libor plus 325 basis points, the source said.

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

GNC also is expected to come to the high-yield market some time this month with a bond offering via Lehman Brothers and JPMorgan to help fund the LBO as well.

Under the acquisition agreement, Numico has agreed 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.

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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