Retailer GNC Eyes $705M Leveraged Loan Refinancing That Would Yield 9.25%

GNC logoA Bank of America Merrill Lynch–led arranger group this afternoon launched a $705 million, five-year B term loan for GNC Holdings, setting price talk at L+700, with a 1% LIBOR floor and 97.5–98 OID, sources said. Commitments are due Friday, Nov. 17 by noon EST.

The transaction includes 102 and 101 hard call premiums. The loan is covered by a maximum total net leverage covenant set at 6.75x, with a step down to 6.5x on March 31, 2021.

Additional arrangers include Barclays, BMO Capital Markets, Citizens, and J.P. Morgan.

Proceeds from the term loan will be used alongside an adjoining bond offering to refinance the company’s B term loan and revolver.

In May, GNC Holdings discontinued a planned amend-to-extend transaction.

Late in 2013 GNC closed a $1.35 billion, five-year leveraged loan refinancing. That credit was priced at LIBOR plus 250 bps.

Pittsburgh-based GNC (NYSE: GNC) is a global specialty health, wellness, and performance retailer.

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