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Prospect News home > News index > List of issuers G > Headlines for GNC Holdings, Inc. > News item |
S&P cuts GNC, rates loan, notes B
S&P said it lowered the corporate credit rating on GNC Holdings Inc. to B from B+ and assigned a B issue-level rating to the company's proposed $705 million secured term loan B and the $500 million first-lien senior secured notes.
The 3 recovery rating indicates an expectation for meaningful recovery (50%- 70%; rounded estimate of 60%) of principal in the event of a payment default or bankruptcy.
The agency does not rate the company's proposed $100 million ABL facility.
The outlook is negative.
S&P said it will withdraw the ratings on the existing senior secured credit facilities once the refinancing transaction closes.
“The downgrade reflects our projection for increased interest expense and weaker credit metrics, including the fixed-charge ratio, under the proposed capital structure,” the agency said in a news release.
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