Moody's rates Equinox loan B1

Moody's Investors Service said it assigned a B1 (LGD 3) rating to Equinox Holdings, Inc.'s proposed $200 million term loan.

Moody's also said it affirmed all of Equinox's existing ratings, including its B2 corporate family rating and B2-PD probability of default rating.

The outlook remains stable.

The proceeds from the $200 million term loan add-on will be used to pre-fund capital expenditures associated with new club openings, investments in affiliates and for general corporate purposes, the agency said.

Pro forma for the proposed term loan, the adjusted debt-to-EBITDA ratio is estimated to be about 8.3x for the 12 months that ended Dec. 31, 2018, Moody's said.

The ratings continue to report solid key operating performance metrics such as comparable club revenue growth, membership price increases and growth in total club count and number of members, the agency said.

Moody's said it expects these favorable trends will continue.

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