GNC Acquisition Holdings Inc. (to be renamed GNC Holdings, Inc.) (the “Company” or “GNC”) announced the pricing of its initial public offering of 22.5 million shares of its Class A common stock at a public offering price of $16.00 per share. GNC’s Class A common stock is expected to begin trading tomorrow, April 1, on the New York Stock Exchange under the ticker symbol “GNC.”
Of the shares offered, 16 million are being issued and sold by the Company and 6.5 million shares are being sold by selling stockholders. In addition, selling stockholders have granted the underwriters a 30-day option to purchase up to an additional 3.375 million shares. The offering is expected to close on April 6, 2011.
The Company expects to use net proceeds of approximately $240 million, together with cash on hand, to redeem approximately $223 million aggregate liquidation preference of the Company’s Series A preferred stock, to make a contribution to the Company’s subsidiary, General Nutrition Centers, Inc. (“Centers”), for purposes of repaying approximately $300 million of outstanding indebtedness under Centers’ senior credit facility, and to pay approximately $11 million in satisfaction of the Company’s obligations under its management services agreement and Class B common stock.
Goldman, Sachs & Co. and J.P. Morgan Securities LLC, along with Deutsche Bank Securities Inc. and Morgan Stanley & Co. Incorporated, are acting as joint bookrunners for the offering, and Barclays Capital Inc., Credit Suisse Securities (USA) LLC, William Blair & Company, L.L.C. and BMO Capital Markets Corp. are acting as co-managers.
This press release does not constitute an offer to sell or the solicitation of an offer to buy nor will there be any sale of the shares referred to in this press release in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of such state or jurisdiction. A registration statement relating to these securities (File No. 333-169618) was filed and has been declared effective by the Securities and Exchange Commission.