GNC talks $325 million five-year floaters at Libor plus 675 bps at 99

By Paul A. Harris

St. Louis, Nov. 13 - GNC Corp./GNC Parent Corp. talked its $325 million offering of five-year floating-rate notes (Caa1/CCC+) at Libor plus 675 basis points at a dollar price of 99.00, a market source told Prospect News on Monday.

Books close at noon on Tuesday, except for San Francisco accounts. Pricing is expected Wednesday morning.

JP Morgan and Goldman Sachs & Co. are joint bookrunners for the Rule 144A and Regulation S offering.

The notes will be callable after one year at par. The call premium steps up to 102.0 after two years, declining to 101 after three years and to par after four years.

The coupon steps up by 50 basis points after the first year and by another 50 basis points after the second year.

Proceeds, together with cash on hand, will be used to redeem GNC's outstanding series A preferred stock, to repay a portion of term loan debt of General Nutrition Centers, Inc., a wholly owned subsidiary of the company, and to pay a dividend to the common stockholders of GNC Parent Corp.

GNC is a Pittsburgh-based nutritional supplements retailer.

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