GNC Holdings, Inc. Reaches Agreement with Lenders for Extension on Debt Maturity Dates
May 15 2020 - 4:30PM
GNC Holdings, Inc. (NYSE: GNC), a global health and wellness brand
that helps people live well, announced today that it has reached an
agreement with required lender groups to extend the springing
maturity dates for certain loans.
As previously disclosed, GNC’s Tranche B-2 term loan, FILO term
loan and revolving credit facility feature springing maturities
that, prior to today’s amendments, were to become due on May 16,
2020 if certain conditions were not satisfied. Due to COVID-19
related impacts on its business, the Company expected it would not
be able to reduce the amount outstanding under the convertible
notes to less than $50 million by May 16, a requirement to avoid
the springing maturity.
As a result of discussions with its lenders, GNC entered into
amendments to its loan agreements to extend the springing maturity
dates for the term loan facility, FILO credit facility and
revolving credit facility until August 10, 2020, subject to certain
conditions that, if not met, would cause the extended springing
maturity date to move forward to June 15, 2020.
The Company continues to explore all strategic options available
to it to refinance and restructure its debt to drive business
continuity and protect the long term financial interests of the
Company and the interests of the Company’s key stakeholders. GNC
will share additional updates when the Company's Board of Directors
has approved a specific alternative or transaction or determined
that further disclosure is appropriate or legally required.
GNC’s founding principles of delivering high quality
science-based health and wellness products remain strong and are
more relevant in today’s environment than ever before. The Company
remains committed to executing on its business strategies that will
position it for long-term growth to the benefit of its
stakeholders.
About Us
GNC Holdings, Inc. (NYSE: GNC) is a leading global health
and wellness brand that provides high quality science-based
products and solutions consumers need to live mighty, live fit,
live long and live well.
The brand touches consumers worldwide by providing its products
and services through company-owned retail locations, domestic and
international franchise locations, digital commerce and strong
wholesale and retail partnerships across the globe. GNC’s
diversified, multi-channel business model has worldwide reach and a
well-recognized, trusted brand. By combining exceptional
innovation, product development capabilities and an extensive
global distribution network, GNC manages a best in class product
portfolio. As of March 31, 2020, GNC had approximately 7,300
locations, of which approximately 5,200 retail locations are
in the United States (including approximately 1,600 Rite
Aid licensed store-within-a-store locations) and the remainder are
locations in approximately 50 countries.
Forward Looking Statements
This press release contains certain
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995 with respect to the
Company’s financial condition, results of operations and business
that is not historical information. Forward-looking statements can
often be identified by the use of terminology such as “subject to,”
“believes,” “anticipates,” “plans,” “expects,” “intends,”
“estimates,” “projects,” “may,” “will,” “should,” “can,” the
negatives thereof, variations thereon and similar expressions, or
by discussions regarding the Company’s strategy and outlook. While
Company believes there is a reasonable basis for its expectations
and beliefs, they are inherently uncertain and subject to
significant business, economic, competitive, regulatory and other
risks, contingencies and uncertainties, most of which are difficult
to predict and many of which are beyond our control. These risks,
contingencies and uncertainties relate to, among other things: the
highly competitive industry in which we operate; unfavorable
publicity or consumer perception of our products; product
innovation; our exploration of new strategic initiatives; our
manufacturing operations; relationships with our vendors; our
distribution network and inventory management; our ability to
develop and maintain a relevant omni-channel experience for our
customers; the performance of, and our relationships with, our
franchisees; the location of our stores; availability of raw
materials; risks related to COVID-19 (novel coronavirus) and its
impacts on our markets (including decreased customer traffic at
malls and other places our stores are located); general economic
conditions; the risk of delays, interruptions and disruptions in
our global supply chain, including disruptions in supply due to
COVID-19 (novel coronavirus) or other disease outbreaks; material
claims or product recalls; regulatory compliance; the value of our
brand name; privacy protection and cyber-security; our current debt
profile and risks related to our capital structure; possible joint
ventures; our key executives and employees; insurance; and tax rate
risks. The Company undertakes no obligation to publicly update or
revise any forward-looking statement, whether as a result of new
information, future events or otherwise. Actual results could
differ materially from those described or implied by such
forward-looking statements. For a more detailed discussion of
important factors that may materially affect such forward-looking
statements, please refer to the Company’s Annual Report on Form
10-K for the year ended December 31, 2019 and the Company’s
Quarterly Report on Form 10-Q for the three months ended March 31,
2020.
Contacts:
Investors: Matt
MilanovichGNCMatthew-Milanovich@gnc-hq.com John
MillsICRJohn.Mills@icrinc.com
Media:Rachel Rosenblatt / Rachel ChesleyFTI
ConsultingGNCComms@fticonsulting.com
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