New Issue: Equinox sells upsized $425 million 9½% six-year secured notes at 98.881 to yield 9¾%

By Paul A. Harris

St. Louis, Jan. 22 - Equinox Holdings, Inc. priced an upsized $425 million issue of 9½% six-year second-lien senior secured notes (B2/B/) at 98.881 to yield 9¾% on Friday, according to an informed source.

The yield printed on top of the yield talk. The issue price came within the context of the 1 to 2 points of discount talk.

Morgan Stanley & Co. and Citadel Securities were joint bookrunners for the issue, which was upsized from $400 million.

Proceeds, together with cash on hand, will be used to refinance an outstanding revolving credit facility, the Equinox Holdings, Inc. 9¼% senior notes due 2012 and the Equinox Holdings II discount notes due 2013.

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

Issuer:	Equinox Holdings, Inc.
Face amount:	$425 million, increased from $400 million
Proceeds:	$420,244,000 (approximate)
Maturity:	Feb. 1, 2016
Securities:	Second-lien senior secured notes
Bookrunners:	Morgan Stanley & Co., Citadel Securities
Coupon:	9½%
Price:	98.881
Yield:	9¾%
Spread:	701 bps
Call features:	Make-whole call at Treasuries plus 50 bps until Feb. 1, 2013, then callable at 104.75, 102.375, par on and after Feb. 1, 2015
Trade date:	Jan. 22
Settlement date:	Jan. 28
Ratings:	Moody's: B2
	Standard & Poor's: B
Distribution:	Rule 144A for life
Price talk:	9¾% area yield with approximately 1-2 points OID

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