GNC Holdings Inc (NYSE:GNC) has decided not to progress with its previously reported plans to issue senior secured notes payable 2022. The terms and conditions of the offering were not sufficiently attractive to the firm for GNC to take it forward.
GNC Holdings withdrew its plans to finalize a fresh senior secured term loan facility as well as an asset-based revolving credit facility. The company has retained services of Goldman Sachs and Co. LLC as GNC strategic advisor to assist the Board assess alternatives to enhance company’s capital structure and other options to improve shareholder value.
GNC Holdings noted that it maintains a robust liquidity position, including cash and cash equivalents of $40.1 million and $246.1 million not drawn as per its Revolving Credit Facility as of the close of September 30, 2017. Moreover, the firm reaffirmed its full year free cash flow projection of $190 million to $210 million and reiterated its plans to reimburse the remainder of its revolver facility in the fourth quarter.
Ken Martindale, the CEO of GNC Holdings, reported that following an extensive process, they decided that the terms presented to GNC under the prospective refinancing were not in the firm’s best interests. Their focus continues to be on establishing momentum behind their One New GNC plan and ensuring they have the appropriate capital framework to support those initiatives.
As they work with their advisors to optimize and review their capital structure, they are assured 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, drive improved performance and sales growth, and offer shareholder value.
GNC connects consumers to their best selves by providing a premium assortment of wellness, heath and performance products, including performance supplements, protein, vitamins, weight management supplements, wellness supplements, herbs and greens, food and drink, health and beauty and other general merchandise.