GNC Holdings reworked to include $1.2 billion in term loans

By Sara Rosenberg

New York, Nov. 27 – GNC Holdings Inc. restructured its loan transaction to include a $300 million term loan B-1 due Jan. 31, 2020 and a $905 million term loan B-2 due Jan. 31, 2021, instead of just a single $705 million five-year term loan B, according to a market source.

Price talk on the term loan B-1 is Libor plus 850 basis points to 900 bps with a 1% Libor floor and an original issue discount of 96, and talk on the term loan B-2 is Libor plus 950 bps to 1,000 bps with a 1% Libor floor and a discount of 96, the source said.

Both loans are non-callable for one year, then at 102 in year two.

Amortization on the term loan B-1 is 10% per annum, and amortization on the term loan B-2 is 5% per annum.

The term loan B-2 has a springing maturity 91 days prior to the maturity of the company’s convertibles due Aug. 15, 2020.

By comparison, under the original structure, the $705 million term loan B was talked at Libor plus 700 bps with a 1% Libor floor, an original issue discount of 97.5 to 98 and hard call protection of 102 in year one and 101 in year two.

Bank of America Merrill Lynch, Barclays, BMO Capital Markets, Citizens Bank and J.P. Morgan Securities LLC are the lead banks on the deal.

Commitments are due at noon ET on Thursday, the source added.

Proceeds will be used to repay existing credit facilities.

The company is no longer planning on issuing $500 million of five-year senior secured notes.

GNC is a Pittsburgh-based specialty health, wellness and performance retailer.

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