S&P rates GNC facilities B

S&P said it assigned a B issue-level rating to GNC Holdings Inc. subsidiary General Nutrition Centers Inc.'s proposed $300 million term loan B-1 due 2020 and $905 million term loan B-2 due 2021.

The 3 recovery rating indicates an expectation for meaningful recovery (50%-70%; rounded estimate: 65%) in the event of payment default or bankruptcy.

Proceeds will be used to redeem the company’s existing secured credit facility debt and to pay related premiums, fees and expenses.

“We believe the newly proposed transaction will result in a somewhat greater interest expense as compared with the previously considered refinancing structure, but that total contemplated debt will remain unchanged at about $1.2 billion,” the agency said in a news release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.