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General Nutrition Centers to use $300 million to pay down term loan
By Angela McDaniels
Tacoma, Wash., March 23 - General Nutrition Centers, Inc. plans to repay outstanding borrowings under its $1.2 billion term loan facility, according to an S-1 filing with the Securities and Exchange Commission.
Parent company GNC Acquisition Holdings Inc. will contribute $300 million to General Nutrition Centers to fund the repayment.
General Nutrition Centers entered into the term loan on March 4. It used a portion of the proceeds, together with cash on hand, to pay a $185 million dividend to GNC and to make an $85 million contribution to GNC Funding, Inc., which GNC Funding then loaned to GNC.
GNC expects to use the dividend, the loan from GNC Funding, $26 million of cash on hand and the proceeds of its planned initial public offering to fund the $300 million contribution and to redeem its series A preferred stock.
Following the IPO, GNC will change its name to GNC Holdings, Inc.
GNC is a Pittsburgh-based specialty retailer of health and wellness products.
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