GNC Announces Private Exchange of Approximately $98.9 Million Aggregate Principal Amount of its Convertible Senior Notes due 2020 for Shares of its Common Stock $GNC

More action from one of the Distressed Debt Watch companies, GNC filing:

GNC Holdings, Inc. (GNC) (the "Company"), a leading global specialty health, wellness and performance retailer, today announced that it has executed exchange agreements with certain holders of its 1.50% Convertible Senior Notes due 2020 (the "2020 Notes") to exchange, in privately negotiated transactions, approximately $98.9 million aggregate principal amount of the 2020 Notes for an aggregate of approximately 14.6 million shares of GNC's class A common stock, together with approximately $0.5 million in cash, representing accrued and unpaid interest on the 2020 Notes being exchanged. The 2020 Notes being exchanged will be retired upon completion of the exchange transactions. The exchange transactions are expected to close on or about December 26, 2017.

These exchange transactions are part of the Company's strategy to implement measures to optimize GNC's capital structure and enhance shareholder value. In the future we may engage in additional exchange transactions with holders of 2020 Notes for shares of the Company's class A common stock, convertible notes or other consideration. In addition, the Company may, subject to market conditions and other factors, engage in additional financing transactions in the future, which may involve equity, equity-linked or debt securities or loans.

As of October 20, 2017, there had been 69,002,867 outstanding shares.

"GNC's Miss on Debt Deal Leads Fitch to See Restructuring" $GNC

Link:

"A lot of the troubles that GNC has are secular pressures that have no end date," said Seema Shah, a senior analyst at Bloomberg Intelligence. "It's hard to think of a strategic partner or even a financial buyer that make sense, especially with the debt on the balance sheet that's coming due relatively quickly."

I think a lot of CBS readers supplement & do weight training. Raise your hand in the comments if you shop at GNC for any of your supplements...

Meanwhile, GNC Aug 2020 debt traded today at 44 cents, a YTM of about 36%.

"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.

Distressed Debt Watch

• Exco Resources (XCO, EDGAR) bond due Sept 2018 trading at 10 cents, YTM over 650%. 
• Cobalt International Energy (CIE, EDGAR) bond due Dec 2019 trading at 11 cents, YTM ~160%.
• Iconix Brand Group (ICON, EDGAR) bond due March 2018 trading at 85 cents, YTM of 63%.
• Bon Ton Stores (BONT, EDGAR) bond due June 2021 trading at 30 cents, YTM over 50%.
• Egalet Corp (EGLT, EDGAR) bond due April 2020 trading at 45 cents, YTM over 45%.
• GNC Holdings (GNC, EDGAR) bond due August 2020 trading at 59 cents, YTM of 22%.
• Frontier Communications (FTR, EDGAR) bond due April 2022 trading at 75 cents, YTM of 17%.

Distressed Debt Watch

• Cobalt International Energy (CIE, EDGAR) bond due Dec 2019 trading at 8 cents, YTM over 180%. Latest news: "The Company has elected not to make the interest payment of approximately $12.3 million due on November 15, 2017 with respect to its outstanding 3.125% Convertible Senior Notes due 2024 (the “2024 Notes”). The indenture governing the 2024 Notes permits the Company a 30-day grace period to make the interest payment. If the Company fails to make the interest payment within the grace period an event of default will result, and the trustee or noteholders holding at least 25% in the aggregate outstanding principal amount of 2024 Notes may elect to accelerate the 2024 Notes causing them to be immediately due and payable." [Going Concern Warning]
• Exco Resources (XCO, EDGAR) bond due Sept 2018 trading at 12 cents, YTM almost 600%. [Going Concern Warning]
• Bon Ton Stores (BONT, EDGAR) bond due June 2021 trading at 30 cents, YTM over 50%.
• Egalet Corp (EGLT, EDGAR) bond due April 2020 trading at 45 cents, YTM over 45%.
• Frontier Communications (FTR, EDGAR) bond due April 2022 trading at 75 cents, YTM of 17%.
• Iconix Brand Group (ICON, EDGAR) bond due March 2018 trading at 84 cents, YTM of 61%.
• GNC Holdings (GNC, EDGAR) bond due August 2020 trading at 59 cents, YTM of 22%.