GNC to redeem some 8½% notes, preferreds with IPO proceeds

New York, May 28 - GNC Corp. said it plans to use $40 million of the proceeds from a planned initial public offering of common stock to redeem some of its 8½% senior subordinated notes due 2010.

The notes will be redeemed at a price of 108.5 plus accrued interest.

Remaining proceeds from the offering along with a cash distribution from its parent will be used to redeem all $100 million liquidation preference of its series A preferred stock. The redemption price will be 112 plus accumulated dividends.

Proceeds will also be used to buy stock from its principal stockholder.

GNC, formerly known as General Nutrition Centers Holding Co., anticipates total net proceeds from the IPO of $278.5 million, according to an S-1 filing with the Securities and Exchange Commission.

Lehman Brothers and Goldman, Sachs & Co. are joint bookrunners of the IPO.

Pittsburgh-based GNC is a retailer of nutritional supplements.

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