GNC calls 12% preferreds

By Angela McDaniels

Seattle, Nov. 28 - GNC Corp. will redeem all outstanding shares of its 12% series A exchangeable preferred stock on Dec. 4, according to a company news release.

As of the redemption date, the accumulated dividends for each share of preferred stock will be $425.82.

All of the preferred shares are held of record by Cede & Co. as nominee for The Depository Trust Co. Accordingly, GNC said no beneficial shareholder will be required to physically surrender its shares to the paying agent, LaSalle Bank NA.

On or before the redemption date, Depository Trust will notify the paying agent to disburse the redemption price to Depository Trust for distribution to the beneficial shareholders based upon the number of shares held and the per share redemption price.

In July, the company said it would redeem the preferreds at $1,085.71 per share following the completion of its initial public offering of common stock. It then withdrew the IPO in August.

The company said it will fund the redemption with proceeds from the sale of its $425 million five-year floating-rate PIK notes.

GNC is the parent company of General Nutrition Centers, Inc., a Pittsburgh-based nutritional supplements retailer.

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