S&P: General Nutrition loan BB

Standard & Poor's said the BB rating on General Nutrition Centers Inc.'s tranche B term loan facility due March 2, 2018 is unchanged following the $200 million increase in the term loan.

The 3 recovery rating, indicating 50% to 70% expected recovery in a default, also remains unchanged.

With the completion of the add-on, the company has $1.1 billion outstanding on the $1.4 billion tranche B term loan facility.

The proceeds will be used to partially fund the previously announced $300 million share repurchase program by GNC Holdings Inc., General Nutrition's parent, S&P said, and for general corporate purposes.

The ratings reflect the company's significant financial risk profile, given its good cash flow generation, stable credit metrics and more moderate financial policies, S&P said.

The ratings also consider the company's fair business, reflecting the company's leading position in the highly competitive and fragmented nutritional supplement specialty retail sector, good profitability measures and an expectation for near-term sales growth to be above the industry average of 3% to 6%, the agency said.

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