LA Fitness cuts term loan B to $1 billion, ups term A to $250 million

By Sara Rosenberg

New York, June 23 – LA Fitness International LLC downsized its six-year covenant-light term loan B to $1 billion from $1.5 billion and upsized its term loan A to $250 million from $150 million, according to a market source.

In addition, pricing on the term loan B was increased to Libor plus 450 basis points from Libor plus 400 bps, the original issue discount firmed at 99, the wide end of the 99 to 99˝ talk, and the 101 soft call protection was extended to one year from six months, the source said.

The term loan B still has a 1% Libor floor.

The company’s now $1.6 billion credit facility, down from $2 billion, also includes a $350 million revolver.

Bank of America Merrill Lynch, BNP Paribas Securities Corp. and Barclays are the lead banks on the deal.

Proceeds will be used to refinance existing debt and for general corporate purposes, and, due to the downsizing of the credit facility, the one-time repurchase of equity interests is being revised, the source added.

Recommitments are due at 2 p.m. ET on Tuesday.

LA Fitness is an Irvine, Calif.-based health club chain.

© 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.