GNC Holdings, Inc. Reaches Agreement with Lenders for Extension of Debt Maturity Dates
June 12 2020 - 4:48PM
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, could be
accelerated from August 10, 2020 to June 15, 2020 if certain
conditions are not satisfied. Due to COVID-19 related impacts on
its business, the Company expected it would not be able to satisfy
certain of those conditions, which could result in the acceleration
of the springing maturity date.
As a result of discussions with its lenders, GNC
entered into amendments to its loan agreements to extend from June
15, 2020 to June 30, 2020 the dates on which, under certain
circumstances, the respective springing maturity dates for the term
loan facility, FILO credit facility and revolving credit facility
may accelerate.
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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