GNC announces $500M buyback program, shares +1.4% AH

|About: GNC Holdings, Inc. (GNC)|By:, SA News Editor

GNC's new $500M buyback is good for repurchasing nearly 9% of outstanding shares at current levels. (PR)

To help pay for the buyback, GNC has increased the size of its term loan to $1.35B. The loan's maturity date has been extended by a year to March 2019, and its interest rate has been lowered to "the greater of the sum of the applicable Adjusted LIBO Rate and 0.75% plus the applicable margin of 2.50%."

GNC had just $78M in cash/equivalents as of Sep. 30, and $1.09B in debt. Moody's recently downgraded the health store owner's term loan to B1 from Ba3.