LA Fitness launches term loan B repricing at Libor plus 400-425 bps

By Sara Rosenberg

New York, March 21 – Fitness International LLC, which does business as LA Fitness, held a lender call on Tuesday to launch a repricing of its term loan B that is talked at Libor plus 400 basis points to 425 bps with a 1% Libor floor and a par issue price, according to a market source.

The repriced loan includes 101 soft call protection for six months, the source said.

With the repricing, the company plans on repaying $100 million of the term loan B debt with revolving credit facility borrowings, bringing the term loan B size down to about $1.03 billion.

Bank of America Merrill Lynch is the left lead arranger on the deal, and MUFG is also a joint lead arranger.

The repricing will take the term loan B down from Libor plus 500 bps with a 1% Libor floor.

Commitments are due at 5 p.m. ET on Monday, the source added.

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

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