Monday, December 4, 2017

"GNC Withdraws Proposed Offering of Senior Secured Notes" $GNC

News today:

GNC Holdings, Inc., a leading global specialty health, wellness and performance retailer, today announced that it has decided not to proceed with its previously announced plans to issue, via its wholly-owned subsidiary, General Nutrition Centers, Inc., senior secured notes due 2022 as the terms and conditions offered were not sufficiently attractive to the Company for GNC to move forward. The Company also withdrew its plans to enter into a new senior secured term loan facility and a new senior secured asset-based revolving credit facility at this time.

GNC also announced that it has retained Goldman Sachs and Co. LLC as its strategic advisor to help the Board evaluate alternatives to optimize GNC's capital structure and other alternatives to enhance shareholder value. GNC noted that it maintains a strong liquidity position, including $40.1 million in cash and cash equivalents and $246.1 million undrawn under its Revolving Credit Facility as of September 30, 2017. In addition, the Company reiterated its full year free cash flow target of $190 million to $210 million and reconfirmed its plans to repay the remainder of its revolver in the fourth quarter.

"Following a thorough process, we determined that the terms offered to GNC under the potential refinancing were not in the Company's best interests at this time," said Ken Martindale, Chief Executive Officer. "Our focus remains on continuing to build momentum behind our One New GNC strategy and ensuring we have the appropriate capital structure to support those efforts. As we work with our advisors to review and optimize our capital structure, we are confident that our cash flow and liquidity will enable us to continue to invest behind our key initiatives to provide customers innovative, highly differentiated products and experiences, drive sales growth and improved performance, and deliver shareholder value."
Oosh... and notice that they don't use a serial comma.

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