S&P rates Fitness International loans B+

S&P said it assigned B+ issue-level and 2 recovery ratings (70%-90%; rounded estimate: 85%) to Fitness International LLC’s new $300 million revolving credit facility, $300 million term loan A due in 2028, and $675 million term loan B due in 2029. The agency concurrently raised the company’s issuer rating to B from B-.

Fitness International will use the loans to refinance its senior secured credit facilities.

“The upgrade reflects our expectations that Fitness International will maintain leverage below 6.5x, generate positive free cash flow, and maintain at least 15% covenant headroom. We view the proposed new credit facilities as an overall credit positive. The proposed transaction is leverage-neutral, it addresses near-term maturities in 2025, and provides more headroom with the fixed-charge covenant,” S&P said in a press release.

The outlook is stable.

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