Pittsburgh, PA—GNC has reached an agreement with required lender groups to extend the springing maturity dates for certain loans, according to a press release.
GNC’s Tranche B-2 term loan, FILO term loan, and revolving credit facility feature springing maturities that were to become due on May 16, 2020, if certain conditions were not satisfied. Due to COVID-19 related impacts on business, the press release says that GNC would not be able to reduce the amount outstanding under the notes to less than $50 million by May 16, a requirement to avoid the springing maturity.
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Following discussions with the lenders, the springing maturity dates have been extended until August 10, 2020, subject to certain conditions that, if not met, would cause the date to move up to June 15, 2020, according to the press release.
The release notes that GNC is continuing to explore all strategic options available to it to refinance and restructure its debt to protect the long-term financial interests of the company and its stakeholders.