Moody’s pumps up Fitness International

Moody's Investors Service said it upgraded Fitness International, LLC's corporate family rating to B2 from B3, and probability of default rating to B2-PD from B3-PD following the completion of the refinancing transaction of its first-lien credit facility.

The rating actions conclude the review for upgrade started on Jan. 17 when the company launched the refinancing transaction of its new first-lien credit facilities. The outlook is now stable.

Additionally, Moody's affirmed the B1 rating for the new first-lien bank credit facility consisting of a $300 million revolver due 2028, a $300 million term loan A due 2028, and a $675 million term loan B due 2029. The agency also withdrew the B2 ratings on the old first-lien credit facilities since the instruments were retired in conjunction with the refinancing.

“The upgrade of CFR to B2 reflects that the refinancing improved the company's liquidity position and maturity profile while preserving good free cash flow despite a higher interest cost. The transaction extended out the maturities of the new credit facility to 2028 for the revolver and term loan A, and to 2029 for the term loan B from early 2025.

“The upgrade also reflects Moody's expectation that operating performance including membership trends will continue to improve in 2024. Membership and revenue as of September 2023 have almost fully recovered to pre-pandemic levels,” the agency said in a press release.

© 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.