New Issue: Equinox prices $290 million six-year notes at par to yield 9¼%

By Paul A. Harris

St. Louis, Feb. 10 - Equinox Holdings Inc. priced $290 million issue of six-year senior unsecured notes (B-) at par to yield 9¼%, according to an informed source.

Merrill Lynch & Co. had the books for the notes, which were issued via Rule 144A and Regulation S in a quick-to-market Thursday night transaction.

Proceeds will be used to fund the leveraged buyout of the company.

The New York City-based issuer operates upscale, full-service fitness clubs.

Issuer:	Equinox Holdings Inc.
Amount:	$290 million
Maturity:	Feb. 15, 2012
Security description:	Senior unsecured notes
Bookrunner:	Merrill Lynch & Co.
Coupon:	9¼%
Price:	Par
Yield:	9¼%
Spread:	466 basis points
Call features:	Make-whole call at Treasuries plus 50 basis points until Feb. 15, 2009, then callable at 103, 102, 101, par on and after Feb. 15, 2012
Equity clawback:	Until Feb. 15, 2009 for 35% at 109.25
Trade date:	Feb. 9
Settlement date:	Feb. 10
Rating:	Standard & Poor's: B-
Distribution:	Rule 144A/Regulation S

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