Moody’s rates LA Fitness facility B1

Moody's Investors Service said it assigned a B2 corporate family rating and B3-PD probability of default rating to LA Fitness International, LLC.

The agency also assigned a B1 rating to the company's proposed $2 billion senior secured bank credit facility, consisting of a $350 million revolver expiring 2018, a $150 million term loan A due 2018 and a $1.5 billion term loan B due 2020.

The outlook is stable.

Proceeds will be used to refinance LA Fitness' existing $475 million of debt and purchase the ownership units from one of the existing private equity partners. Roughly $210 million of the $350 million revolver will be drawn at close.

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