GNC Holdings Inc (NYSE:GNC) stock was soaring today on news of a deal with China-based Harbin Pharmaceutical.
The new deal that has GNC stock flying high today includes a $300 million investment into the company by Harbin Pharmaceutical. This will make the Chinese company the single largest shareholder of GNC stock.
GNC Holdings Inc and Harbin Pharmaceutical will also be teaming up on a new joint venture. This will have them working together on the “manufacturing, marketing, sale and distribution of GNC-branded products in China.”
The announcement of the deal also includes news about GNC Holdings Inc’s maturing loans. The company says that it is seeking to delay the maturity of one of its loans. This loan is currently set to mature in March 2019, but GNC wants to push this back to March 2021.
Creditors are in support of pushing back the maturity date of the loan. When this happens, GNC Holdings Inc says that it will also cancelling its current Revolving Credit Facility and open a new $100 million ABL Revolver. It will also be issuing a $275 million ABL Term Loan.
GNC Holdings Inc also released its earnings report for the fourth quarter of 2017 today. The company reported earnings per share of 25 cents on revenue of $557.74 million. Earnings per share and revenue from the same time last year was 7 cents and $569.93 million and Wall Street was looking for earnings per share of 25 cents on revenue of $568.81 for the fourth quarter of 2017.
GNC stock was up 29% as of noon Tuesday.
As of this writing, William White did not hold a position in any of the aforementioned securities.