GNC makes stock moves

Pittsburgh – GNC Holdings Inc. is making moves to both buy stock and sell convertible notes.



The retailer has authorized a multi-year program to repurchase up to $500 million of its Class A common stock.



The authorization is in addition to the company's previous authorization, which currently has $242 million remaining. The repurchases are expected to take place during the next 24 months with the amount and timing determined by GNC.



In addition, GNC will offer $250 million of convertible senior notes due 2020 in a private offering to qualified institutional buyers. GNC also intends to grant the initial purchasers of the notes the option to purchase up to an additional $37.5 million of notes, for a total potential offering of up to $287.5 million.



The notes will be convertible into cash, shares of the company's Class A common stock, or a combination, at the company's discretion. The interest rate, conversion rate and other terms of the notes are to be determined.



GNC intends to use $100 million of the net proceeds from this offering to repurchase shares of its common stock from note purchasers. The remaining proceeds will be used to reduce existing borrowings under GNC’s term loan facility.