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Prospect News home > News index > List of issuers G > Headlines for GNC Holdings, Inc. > News item |
Fitch raises GNC to B
Fitch Ratings said it upgraded GNC Holdings, Inc.'s long-term issuer default rating to B from CCC and removed the rating watch evolving following the company gaining 87% lender consent to extend its credit facility's maturity by two years and make certain other amendments to the existing credit agreement.
The outlook is stable.
Upon the amendment closing, the maturity date of about $980 million (or 87%) of term loan principal will extend to 2021/2022 from 2019, while roughly $150 million (13%) is still expected to mature in March 2019.
“Fitch expects GNC will be able to address its 2019 and 2020 maturities with internally generated cash and the company's proposed $300 million convertible preferred equity investment from Harbin Pharmaceutical Group Co., Ltd.,” the agency said in a news release.
“Given Fitch's expectations of stabilizing sales and EBITDA and ongoing debt reduction, GNC's refinancing prospects in 2021 could improve relative to its recent efforts to refinance its $1.1 billion term loan previously due March 2019.”
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