GNC Holdings, Inc. (NYSE: GNC) announced that the term lenders under GNC Nutrition Centers, Inc.'s credit agreement have approved the extension of the maturity date of the term loans held by such lenders by two years to March 2021, subject to certain conditions, in addition to certain other modifications to the credit agreement.
In addition, GNC Nutrition has cancelled its existing revolving credit facility, entered into a new $100 million ABL Revolver and a portion of the extended term loans have been exchanged for ABL FILOterm loans which, together with certain newly funded ABL FILO term loans, equal $275 million in aggregate principal amount. The ABL Revolver and ABL FILO loans mature in August 2022 and December 2022, respectively, subject to certain conditions.
The completion of the amendment and extension process satisfies a condition to closing of the previously announced approximately $300 million strategic investment in the Company by Harbin Pharmaceutical Group Holding Co., Ltd ("Hayao"). Both parties are continuing to work together to complete the transaction.
"This amendment improves our financial flexibility and is an important milestone as we work to complete our transaction with Hayao," said Ken Martindale, chief executive officer of GNC. "We are very pleased with the strong support we received from our term loan lenders. We remain focused on continuing to enhance the customer experience and deliver innovative products as we drive improved financial performance and long-term value for our stakeholders."
About Us
GNC Holdings, Inc. (NYSE: GNC) - Headquartered in Pittsburgh, PA - is a leading global specialty health, wellness and performance retailer.
GNC connects customers to their best selves by offering a premium assortment of heath, wellness and performance products, including protein, performance supplements, weight management supplements, vitamins, herbs and greens, wellness supplements, health and beauty, food and drink and other general merchandise. This assortment features proprietary GNC and nationally recognized third-party brands.
GNC's diversified, multi-channel business model generates revenue from product sales through company-owned retail stores, domestic and international franchise activities, third-party contract manufacturing, e-commerce and corporate partnerships. As of December 31, 2017, GNC had approximately 9,000 locations, of which approximately 6,700 retail locations are in the United States(including approximately 2,400 Rite Aid franchise store-within-a-store locations) and franchise operations in approximately 50 countries.
