GNC Holdings Inc (NYSE:GNC) has decided not to advance with its previously reported plans to issue, senior secured notes due 2022. The company stated that as the conditions and terms offered were not adequately attractive to the firm to move forward. It has also pulled out its plans to finalize a senior secured term loan offering and a senior secured asset-related revolving credit facility for now.
GNC Holdings reported that Goldman Sachs and Co. LLC will continue to be the strategic advisor to assist the Board assess alternatives to enhance company’s capital structure and other options to increase shareholder value.
The company noted that it retains a robust liquidity position, including cash and cash equivalents of $40.1 million and $246.1 million not drawn under the Revolving Credit Facility as of the close of September 30, 2017. Besides, the firm restated its projection of full year free cash flow range of $190 million to $210 million. The company also reconfirmed its strategies to repay the outstanding revolver in the fourth quarter.
Ken Martindale, the Chief Executive Officer of GNC, expressed that following an extensive procedure, they decided that as of now, the terms presented to company under the prospective refinancing were not in the firm’s best interests. Their focus continues to be on continuing to establish momentum behind their One New GNC plan and ensuring they have the suitable capital structure to back those initiatives.
As they work with their advisors to review and enhance their capital structure, they are confident that their liquidity and cash flow will allow them to continue to invest behind their major measures to offer consumers innovative, highly differentiated experiences and products, improved performance and drive sales growth, and enhance shareholder value.
In the last trading session, the stock price of GNC Holdings declined more than 2% to close the session at $5.26.