GNC Shares Go for $16

PITTSBURGHThe initial public offering of 22.5 million shares of GNC Acquisition Holdings Inc.s Class A common stock is $16.00 per share, according to a statement released by the company. GNC's Class A common stock began trading on April 1 on the New York Stock Exchange under the ticker symbol "GNC."

Of the shares offered, 16 million are being issued and sold by the company 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 3.375 million shares. The offering is expected to close on April 6, 2011.

The company said it expects to 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, to make a contribution to the company's subsidiary, General Nutrition Centers Inc., for purposes of repaying approximately $300 million of outstanding indebtedness under centers' senior credit facility, and to pay approximately $11 million in satisfaction of the company's obligations under its management services agreement and Class B common stock.

Goldman, Sachs & Co. and J.P. Morgan Securities LLC, along with Deutsche Bank Securities Inc. and Morgan Stanley & Co. Inc., are acting as joint bookrunners for the offering, and Barclays Capital Inc., Credit Suisse Securities (USA) LLC, William Blair & Company, L.L.C. and BMO Capital Markets Corp. are acting as co-managers.

GNC is a global specialty retailer of nutritional products including vitamin, mineral, herbal and other specialty supplements and sports nutrition, diet and energy products. As of Dec. 31, 2010, GNC has more than 7,200 locations, of which more than 5,600 retail locations are in the United States (including 903 franchise and 2,003 Rite Aid franchise store-within-a-store locations), and franchise operations in 46 international countries (including distribution centers where retail sales are made). The company also offers products and product information online.