Equinox Holdings trims pricing on first- and second-lien term loans

By Sara Rosenberg

New York, March 2 – Equinox Holdings Inc. reduced pricing on its $800 million seven-year covenant-light first-lien term loan (B1/B+) to Libor plus 325 basis points from Libor plus 350 bps and on its $200 million eight-year covenant-light second-lien term loan (Caa1/CCC+) to Libor plus 700 bps from Libor plus 750 bps, according to a market source.

In addition, the original issue discount on the first-lien term loan was changed to 99.75 from 99.5 and the discount on the second-lien term loan was revised to 99.25 from 99, the source said.

Both term loans still have a 1% Libor floor, the first-lien term loan still has 101 soft call protection for six months, and the second-lien term loan still has hard call protection of 102 in year one and 101 in year two.

The company’s $1.15 billion credit facility also includes a $150 million five-year revolver (B1/B+).

Bank of America Merrill Lynch and Morgan Stanley Senior Funding Inc. are the lead banks on the deal, with Bank of America left lead on the first-lien debt and Morgan Stanley left lead on the second-lien debt.

Recommitments were scheduled to be due at 5 p.m. ET on Thursday, the source added.

Proceeds will be used to refinance an existing credit facility.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.