By Paul A. Harris
St. Louis, Nov. 15 - GNC Corp./GNC Parent Corp. priced an upsized $425 million issue of five-year senior floating-rate PIK notes at 99 with a coupon of six-month Libor plus 675 basis points on Wednesday, according to informed sources.
The issue, which was upsized by $100 million, came on top of the price talk.
JP Morgan and Goldman Sachs & Co. were joint bookrunners for the Rule 144A and Regulation S issue.
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.
| Issuer: | GNC Corp./GNC Parent Corp.
|
| Amount: | $425 million (increased from $325 million)
|
| Maturity: | Dec. 1, 2011
|
| Security description: | Senior floating-rate PIK notes
|
| Bookrunners: | JP Morgan, Goldman Sachs & Co.
|
| Coupon: | Six-month Libor plus 675 bps (PIK for first five years)
|
| Price: | 99.00
|
| Call features: | Callable after one year at par, after two years at 102, after three years at 101, fourth and fifth years at par
|
| Step-ups: | Coupon steps up 50 bps after first year, by another 50 bps after second year
|
| Trade date: | Nov. 15
|
| Settlement date: | Nov. 21
|
| Ratings: | Moody's: Caa2
|
| Standard & Poor's: CCC+
|
| Distribution: | Rule 144A/Regulation S
|
| Price talk: | Libor plus 675 bps at 99.00
|
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