L.A. Fitness trims term loan B to $675 million, tightens OID to 99.75

By Sara Rosenberg

New York, April 12 – L.A. Fitness (Fitness International LLC) downsized its seven-year covenant-light term loan B (B1/BB-) to $675 million from $700 million, according to a market source.

Also, the original issue discount on the term loan B was changed to 99.75 from 99.5, the source said.

Pricing on the term loan B is still Libor plus 325 basis points with a 0% Libor floor, and the debt still has 101 soft call protection for six months.

Bank of America Merrill Lynch, MUFG, Bank of the West and Fifth Third Bank are the lead arrangers on the deal.

Allocations are expected on Friday, the source continued.

Proceeds will be used with new pro rata facilities to refinance existing credit facilities and to fully redeem the outstanding $337 million of 6% preferred equity held by Seidler Institutional and Madison Dearborn Partners.

With the term loan B downsizing, the term loan A is being upsized by $25 million, the source added.

L.A. Fitness is an Irvine, Calif.-based non-franchised fitness club operator.

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