Equinox sets first-and second-lien term loan talk as ratings emerge

By Sara Rosenberg

New York, Nov. 9 - Equinox Holdings Inc. released price talk on its $500 million seven-year first-lien term loan (B1/B) and $200 million 71/2-year second-lien term loan (Caa2/CCC+) as ratings on the debt are now out, according to a market source.

The first-lien term loan is talked at Libor plus 425 basis points to 450 bps with a 1.25% Libor floor and an original issue discount of 99, and the second-lien term loan is talked at Libor plus 825 bps to 850 bps with a 1.25% Libor floor and a discount of 98, the source said.

The first-lien loan has 101 soft call protection for one year, and the second-lien loan has call protection of 103 in year one, 102 in year two and 101 in year three.

Also included in the company's $800 million credit facility is a $100 million five-year revolver (B1/B).

Bank of America Merrill Lynch, Morgan Stanley Senior Funding Inc., Goldman Sachs & Co. and Citigroup Global Markets Inc. are the lead banks on the deal that launched with a bank meeting this past Wednesday.

Proceeds will be used to refinance existing debt.

Equinox is a New York-based exercise and fitness company.

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