LA Fitness sets $860.8 million term loan B at Libor plus 425 bps

By Sara Rosenberg

New York, March 29 – LA Fitness (Fitness International LLC) set its term loan B size at $860.8 million and firmed pricing at Libor plus 425 basis points, the high end of the Libor plus 400 bps to 425 bps talk, according to a market source.

As before, the term loan has a 1% Libor floor, a par issue price and 101 soft call protection for six months.

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

Proceeds will be used to reprice an existing term loan B down from Libor plus 500 bps with a 1% Libor floor.

With the repricing, the company is paying down about $100 million of term loan B debt with revolving credit facility borrowings, and converting about $169 million in term loan B debt to term loan A borrowings, bringing the term loan B size to $860.8 million, the source added.

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

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