Fitness International talks $1.17 billion term B at Libor plus 500 bps

By Sara Rosenberg

New York, Sept. 13 – Fitness International LLC (LA Fitness) launched on Tuesday its $1,174,300,000 covenant-light term loan B (B+) due July 1, 2020 with price talk of Libor plus 500 basis points with a 1% Libor floor, according to a market source.

Of the total term loan B amount, $964.3 million is existing debt and $210 million is incremental debt.

The incremental piece is talked with an original issue discount of 99 to 99.5 and existing lenders are being offered a 25 bps amendment fee, the source said.

The entire term loan B has 101 soft call protection for six months.

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

Commitments are due on Sept. 20, the source added.

Proceeds will be used to redeem the equity units of Madison Dearborn Partners and Seidler Institutions, to refinance existing senior credit facility debt and for general corporate purposes.

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

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