Fitness International trims incremental term B size to $170 million

By Sara Rosenberg

New York, Sept. 21 – Fitness International LLC (LA Fitness) downsized its incremental covenant-light term loan B due July 1, 2020 to $170 million from $210 million and upsized its amended term loan A to $377.5 million from $337.5 million, according to sources.

Also, the original issue discount on the incremental term loan B firmed at 99.5, the tight end of the 99 to 99.5 talk, sources said.

Pricing on the incremental term loan B, as well as on $964.3 million in existing covenant-light term loan B debt due July 1, 2020, is Libor plus 500 basis points with a 1% Libor floor.

As before, existing term loan B lenders are being offered a 25 bps amendment fee, and the entire term loan B is getting 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 (B+).

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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