GNC announces IPO

16 million shares will be issued, sold by GNC

PITTSBURGH — GNC Thursday evening announced its initial public offering of 22.5 million shares of its Class A common stock at an opening price of $16 per share.

Of the shares offered, 16 million are being issued and sold by GNC 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 3.4 million shares. That offering is expected to close on April 6.

GNC announced it will 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; pay down approximately $300 million of outstanding indebtedness under GNC’s senior credit facility and pay approximately $11 million in satisfaction of the company's obligations under its management services agreement and Class B common stock.

Goldman, Sachs and J.P. Morgan Securities, along with Deutsche Bank Securities and Morgan Stanley, are acting as joint bookrunners for the offering. Barclays Capital, Credit Suisse Securities, William Blair and BMO Capital Markets are acting as co-managers.

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